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Political Economy of Agricultural Policies and Environmental Weights

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  • Cemal Atici

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    Abstract

    In this paper, a theoretical model was constructed to endogenously determine environmental weights in the agricultural sector. The conventional Political Preference Function was extended to include environmental weights. The model was applied to the wheat sector in the EU for the years 1990 and 2006. The results imply that designing protection levels that have small disparities between domestic and world prices and avoiding excess production cause a positive environmental surplus which leads to higher environmental weights.

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    File URL: http://www.icer.it/docs/wp2008/ICERwp25-08.pdf
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    Bibliographic Info

    Paper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number 25-2008.

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    Length: pages
    Date of creation: Jun 2008
    Date of revision:
    Handle: RePEc:icr:wpicer:25-2008

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    Keywords: Environmental Weights; Political Preference Functions; EU; Agriculture;

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    1. Kennedy, P Lynn & von Witzke, Harald & Roe, Terry L, 1996. " Strategic Agricultural Trade Policy Interdependence and the Exchange Rate: A Game Theoretic Analysis," Public Choice, Springer, vol. 88(1-2), pages 43-56, July.
    2. Cemal Atici, 2005. "Weight Perception and Efficiency Loss in Bilateral Trading: The Case of US and EU Agricultural Policies," Journal of Productivity Analysis, Springer, vol. 24(3), pages 283-292, November.
    3. Rausser, Gordon C & Freebairn, John W, 1974. "Estimation of Policy Preference Functions: An Application to U.S. Beef Import Quotas," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 437-49, November.
    4. Atici, Cemal & Kennedy, P. Lynn, 2005. "Tradeoffs between income distribution and welfare: The case of Turkey's integration into the European Union," Journal of Policy Modeling, Elsevier, vol. 27(5), pages 553-563, July.
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