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Achieving Environmental Objectives Under Reduced Domestic Agricultural Support and Trade Liberalization: An Empirical Application to Taiwan

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  • Chang, Hung-Hao
  • Boisvert, Richard N.
  • Blandford, David

Abstract

We focus on rice policy reform required for Taiwan's admission to the WTO, and examine the effects, theoretically and empirically, of the re-instrumentation of domestic policy needed to achieve environmental objectives when both positive and negative environmental externalities exist. Policies that treat non-commodity attributes in agriculture as secondary to existing aims, such as income support, are unlikely to result in the desired supplies of environmental goods. Those supplies can be achieved at lower government and social costs using policy instruments to achieve environmental goals directly. Results are relatively insensitive to the social values assigned to environmental goods.

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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 34 (2005)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:arerjl:10201

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Web page: http://www.narea.org/
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Related research

Keywords: WTO policy reform; multifunctionality; agri-environmental policy; rice policy; agricultural trade policy; Environmental Economics and Policy; International Relations/Trade;

References

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  1. Abbott, Philip C. & Paarlberg, Philip L., 1998. "Tariff rate quotas: structural and stability impacts in growing markets," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(3), December.
  2. Munisamy Gopinath & JunJie Wu, 1999. "Environmental Externalities and the Optimal Level of Market Power," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 825-833.
  3. David Blandford & Richard N. Boisvert & Linda Fulponi, 2003. "Nontrade Concerns: Reconciling Domestic Policy Objectives with Freer Trade in Agricultural Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 668-673.
  4. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
  5. Rob Fraser, 2003. "An Evaluation of the Compensation Required by European Union Cereal Growers to Accept the Removal of Price Support," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 431-445.
  6. Jeffrey M. Peterson & Richard N. Boisvert & Harry de Gorter, 2002. "Environmental policies for a multifunctional agricultural sector in open economies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 423-443, December.
  7. Barnett, A H, 1980. "The Pigouvian Tax Rule under Monopoly," American Economic Review, American Economic Association, vol. 70(5), pages 1037-41, December.
  8. Lee, Dwight R., 1975. "Efficiency of pollution taxation and market structure," Journal of Environmental Economics and Management, Elsevier, vol. 2(1), pages 69-72, September.
  9. Abbott, Philip C. & Paarlberg, Philip L., 1998. "Tariff rate quotas: structural and stability impacts in growing markets," Agricultural Economics, Blackwell, vol. 19(3), pages 257-267, December.
  10. Lichtenberg, Erik & Zilberman, David, 1986. "The Welfare Economics of Price Supports in U.S. Agriculture," American Economic Review, American Economic Association, vol. 76(5), pages 1135-41, December.
  11. Hoehn, John P & Randall, Alan, 1989. "Too Many Proposals Pass the Benefit Cost Test," American Economic Review, American Economic Association, vol. 79(3), pages 544-51, June.
  12. James Shortle & David Abler & Richard Horan, 1998. "Research Issues in Nonpoint Pollution Control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 571-585, April.
  13. John E. Floyd, 1965. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 73, pages 148.
  14. Holtermann, Sally, 1976. "Alternative Tax Systems to Correct for Externalities, and the Efficiency of Paying Compensation," Economica, London School of Economics and Political Science, vol. 43(169), pages 1-16, February.
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Cited by:
  1. Blandford, David & Brunstad, Rolf Jens & Gaasland, Ivar & Vardal, Erling, 2008. "Optimal agricultural policy and PSE measurement: an assessment and application to Norway," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36769, Agricultural Economics Society.
  2. Chang, Hung-Hao & Boisvert, Richard N. & Blandford, David, 2006. "The Implications of Geographic Heterogeneity for Multifunctional Rice Policy in Taiwan," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25254, International Association of Agricultural Economists.

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