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Landbrugspolitikkens okonomisk-teoretiske fundament

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  • Kyed, Karsten
  • Kaergard, Niels
  • Zobbe, Henrik

Abstract

This paper discusses economic arguments for government intervention and support in agriculture. Two types of arguments seem plausible. The first one refers to the classical view that agriculture has a chronic income problem and therefore governments must intervene to ensure a fair income distribution between sectors. The second argument has something to do with the multifunctional role of agriculture and therefore government intervention and support can secure an production of collective goods and positive externalities. Both arguments are however problematic. Income support payments will be capitalized and benefit only the current owner of land. Payments based on multifunctionality will vary across countries due to different marginal utility and furthermore these payments will opposite the overall trend of decoupling agricultural support.

Suggested Citation

  • Kyed, Karsten & Kaergard, Niels & Zobbe, Henrik, 2001. "Landbrugspolitikkens okonomisk-teoretiske fundament," Unit of Economics Working Papers 24205, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
    • Handle: RePEc:ags:rvaewp:24205
    DOI: 10.22004/ag.econ.24205
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    Keywords

    Agricultural and Food Policy;

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