IDEAS home Printed from https://ideas.repec.org/p/ags/aes008/36769.html
   My bibliography  Save this paper

Optimal agricultural policy and PSE measurement: an assessment and application to Norway

Author

Listed:
  • Blandford, David
  • Brunstad, Rolf Jens
  • Gaasland, Ivar
  • Vardal, Erling

Abstract

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 a policy aimed at eliminating subsidized exports both in terms of reducing trade distortions and increasing domestic economic welfare.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aes008:36769
    DOI: 10.22004/ag.econ.36769
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/36769/files/Blandford_brunstad_gaasl_vardal.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.36769?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chang, Hung-Hao & Boisvert, Richard N. & Blandford, David, 2005. "Achieving Environmental Objectives Under Reduced Domestic Agricultural Support and Trade Liberalization: An Empirical Application to Taiwan," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), pages 1-16, April.
    2. Rolf Jens Brunstad & Ivar Gaasland & Erling Vardal, 2005. "Multifunctionality of agriculture: an inquiry into the complementarity between landscape preservation and food security," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(4), pages 469-488, December.
    3. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(4), pages 423-443, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
    2. Czyżewski, Andrzej & Grochowska, Reanata & Józwiak, Wojciech & Kosior, Katarzyna & Kułyk, Piotr & Mirkowska, Zofia, 2014. "Development trends in agricultural sector and policies − challenges for the future (Synthesis)," Multiannual Program Reports 206066, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boisvert, Richard N. & Blandford, David, 2012. "Meeting multiple policy objectives under GHG emission reduction targets," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135515, Agricultural Economics Society.
    2. Thilo W. Glebe & Uwe Latacz-Lohmann, 2008. "Assessing the production and welfare effects of agri-environmental policy: a conceptual analysis," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 1(1), pages 75-92.
    3. Abler, David G., 2004. "Multifunctionality, Agricultural Policy, and Environmental Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), pages 1-10, April.
    4. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," Economic Research Papers 270633, University of Warwick - Department of Economics.
    5. Boisvert, Richard N. & Blandford, David, 2011. "Meeting multiple policy objectives under GHG emissions reduction targets," Working Papers 126617, Cornell University, Department of Applied Economics and Management.
    6. Qenani-Petrela, Eivis & Noel, Jay E. & Mastin, Thomas, 2007. "A Benefit Transfer Approach to the Estimation of Agro-Ecosystems Services Benefits: A Case Study of Kern County, California," Research Project Reports 121605, California Polytechnic State University, San Luis Obispo, California Institute for the Study of Specialty Crops.
    7. Glebe, Thilo W., 2011. "Welfare economics of agricultural trade liberalisation and strategic environmental policy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(2).
    8. Huber, Robert & Lehmann, Bernard, 2010. "Economies of Scope in the Agricultural Provision of Ecosystem Services: An Application to a High Cost Production Region," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(02), pages 1-15, June.
    9. Arovuori, Kyösti & Kola, Jukka, 2005. "Multifunctional Policy Measures for Multifunctional Agriculture," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24771, European Association of Agricultural Economists.
    10. Blandford, David & Gaasland, Ivar & Vårdal, Erling, 2014. "GHG abatement welfare cost curves for Norwegian agriculture," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169734, Agricultural Economics Society.
    11. Blandford, David & Gaasland, Ivar & Vardal, Erling, 2011. "Activity level, emission intensity, and optimal GHG abatement policy: An application to Norwegian agriculture," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108780, Agricultural Economics Society.
    12. Rizov, Marian & Davidova, Sophia & Bailey, Alastair, 2019. "Employment effects of CAP payments in the UK non-farm economy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 147-161.
    13. Casamatta, Georges & Rausser, Gordon & Simon, Leo, 2011. "Optimal taxation with joint production of agriculture and rural amenities," Resource and Energy Economics, Elsevier, vol. 33(3), pages 544-553, September.
    14. Kopainsky, Birgit & Flury, Christian & Giuliani, Gianluca, 2008. "Agriculture’s contribution to rural viability: An approach to estimate regional economic impacts of agricultural policy in Swiss case study regions," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6483, European Association of Agricultural Economists.
    15. FRASER Iain & WASCHIK Robert, 2010. "Agricultural Land Retirement for Biodiversity: The Australian Wool Industry," EcoMod2003 330700055, EcoMod.
    16. Blandford, David & Gaasland, Ivar & Vårdal, Erling, 2013. "Trade-Off Between Food Production And Greenhouse Gas Mitigation In Norwegian Agriculture," Working Papers in Economics 01/13, University of Bergen, Department of Economics.
    17. Özkan Gülzari, Şeyda & Åby, Bente Aspeholen & Persson, Tomas & Höglind, Mats & Mittenzwei, Klaus, 2017. "Combining models to estimate the impacts of future climate scenarios on feed supply, greenhouse gas emissions and economic performance on dairy farms in Norway," Agricultural Systems, Elsevier, vol. 157(C), pages 157-169.
    18. Glebe, Thilo & Latacz-Lohmann, Uwe, 2007. "Agricultural multifunctionality and trade liberalisation," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 82.
    19. Álvarez, Antonio & Roibás, David, 2006. "An Economic Model to Evaluate the Contribution of Genetics to Milk Production," Efficiency Series Papers 2006/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    20. Mark V. Brady & Jordan Hristov & Fredrik Wilhelmsson & Katarina Hedlund, 2019. "Roadmap for Valuing Soil Ecosystem Services to Inform Multi-Level Decision-Making in Agriculture," Sustainability, MDPI, vol. 11(19), pages 1-20, September.

    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aes008:36769. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.