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This book addresses one of the key features of contemporary government policy: how to integrate the economic role of agriculture with the societal role of the rural environment. Historical agricultural policy has focused on encouraging production while protecting farmers from market risk. However production surpluses combined with growing concern over the environmental impacts of intensive agriculture has led to policy changes, which have exposed farmers to more market risk and required them to take account of their impact on the environment. For the first time this book brings these developing policy issues together with a comprehensive consideration of both theoretical and empirical aspects. §The first part of the book contains a set of six theoretical contributions to the economics of the agri-environment, including consideration of the associated policy implications. Building on this theoretical base, the second part contains four international case studies of agri-environmental policy.This book addresses one of the key features of contemporary government policy: how to integrate the economic role of agriculture with the societal role of the rural environment. Historical agricultural policy has focussed on encouraging production while protecting farmers from market risk. However production surpluses combined with growing concern over the environmental impacts of intensive agriculture has led to policy changes, which have exposed farmers to more market risk and required them to take account of their impact on the environment. For the first time this book brings these developing policy issues together with a comprehensive consideration of both theoretical and empirical aspects. §The first part of the book contains a set of six theoretical contributions to the economics of the agri-environment, including consideration of the associated policy implications. Building on this theoretical base, the second part contains four international case studies of agri-environmental policy.§All the authors are well-known experts in their field, and the original material contained in this book should be of interest to academic agricultural and environmental economists, postgraduate students, and policymakers.