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Production Effects of Agri-environmental "Green Box" Payments: Empirical Results from the EU

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  • Salhofer, Klaus
  • Streicher, Gerhard
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    Abstract

    Agri-environmental programs are part of the green box of the GATT Uruguay Round and are supposed to "have no, or at most minimal trade distorting effects or effects on production." In addition, "the amount of payment shall be limited to the extra costs or loss of income involved in complying with the government programme." Utilizing farm accounting data we estimate the effects on yields for ten agri-environmental programs in Austria, which account for 12% of EU's budget expenditures for agri-environmental programs. Only three out of these ten programs have significant negative effects on yields, while one program has a significant positive impact and the rest has no significant impact. These results suggest that there are serious windfall profits associated with some of these programs.

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    File URL: http://purl.umn.edu/24494
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24494.

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    Date of creation: 2005
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    Handle: RePEc:ags:eaae05:24494

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    Keywords: agri-environmental programs; Green box; WTO; Common Agricultural Policy; decoupling; Environmental Economics and Policy; F16; Q56;

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    1. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
    2. Cooper, Joseph C. & Peters, Mark & Claassen, Roger, 2003. "Effects Of Agri-Environmental Payment Policies On Agricultural Trade," 2003 Annual meeting, July 27-30, Montreal, Canada 22240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Devadoss, Stephen, 2002. "Domestic Support And Wto Negotiations From Developing Countries' Perspectives," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36667, Western Agricultural Economics Association.
    4. J Peter Neary, 2003. "Europe on the Road to Doha - Towards a New Global Trade Round," Working Papers 200317, School Of Economics, University College Dublin.
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