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Optimal agricultural policy and PSE measurement: an assessment and application to Norway AgEcon
Blandford, David; Brunstad, Rolf Jens; Gaasland, Ivar; Vardal, Erling.
The producer support estimate (the successor to the producer support equivalent) calculated by the OECD is widely used as an indicator of distortions created by agricultural policies. In this paper we demonstrate that changes in the relative (percentage) PSE are not an accurate indicator of the implications of policy reform for domestic welfare or for trade distortions. We demonstrate that it is important to consider the implications of changes in both the level and the form of support in evaluating the impact of policy reform. Using a model of Norwegian agriculture we show that reforms indicated towards the provision of public goods, while apparently leading to an increase in relative support, are actually superior to existing agricultural policies or to...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural policy; Trade distortion; Domestic support; Producer subsidy estimate (PSE); Agricultural and Food Policy; C61; F13; F18; Q17; Q18.
Ano: 2008 URL: http://purl.umn.edu/36769
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Multifunctionality of Agriculture: An Inquiry Into the Complementarity Between Landscape Preservation and Food Security AgEcon
Brunstad, Rolf Jens; Gaasland, Ivar; Vardal, Erling.
Without support, the levels of agricultural public goods will fall short of the demand in high cost countries like Norway, Finland and Iceland. However, as demonstrated in this paper using Norway as a case, the current support and agricultural activity is far out of proportions from a public goods perspective. Model simulations show that at most 40% of the current support level can be defended by the public good argument. Furthermore, the present support, stimulating high production levels, is badly targeted at the public goods in question. Since agricultural land is a major component of both food security and landscape preservation, thus giving rise to a high degree of cost complementarities between the two public goods, it would be more efficient to...
Tipo: Conference Paper or Presentation Palavras-chave: Food security; Landscape preservation; Public goods; Agricultural policy; Numerical model; Food Security and Poverty; Land Economics/Use.
Ano: 2005 URL: http://purl.umn.edu/24470
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