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The Effects of Domestic Agricultural Policy Reform on Environmental Quality

Author

Listed:
  • Tobey, James A.
  • Reinert, Kenneth A.

Abstract

A general equilibrium model is developed to study the environmental implications of agricultural policies. Model results show that declines in the acreage reduction program (ARP) would reduce agricultural fertilizer use, but the return of ARP land to production would lead to an overall increase in sedimentation and offsite environmental damage. In contrast, if land and fertilizers are highly substitutable, declines in deficiency payments and other commodity price support programs would reduce offsite environmental damages by reducing fertilizer use. Agricultural policy reform would be consistent with conservation policy because it would encourage a reduction in the use of fertilizer-intensive production practices.

Suggested Citation

  • Tobey, James A. & Reinert, Kenneth A., 1991. "The Effects of Domestic Agricultural Policy Reform on Environmental Quality," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  • Handle: RePEc:ags:uersja:138267
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    File URL: http://purl.umn.edu/138267
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    References listed on IDEAS

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    1. 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 148-148.
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    Citations

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    Cited by:

    1. Ervin, David E. & Fox, Glenn, 1998. "Environmental Policy Considerations In The Grain-Livestock Subsectors In Canada, Mexico And The United States," Economic Harmonization in the Canadian\U.S.\Mexican Grain-Livestock Subsector; Proceedings of the 4th Agricultural and Food Policy Systems... 1998 16754, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    2. repec:kap:iaecre:v:3:y:1997:i:3:p:299-311 is not listed on IDEAS
    3. C. Rendleman & Kenneth Reinert & James Tobey, 1995. "Market-based systems for reducing chemical use in agriculture in the United States," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 51-70, January.
    4. Johnstone, Nick & Alavalapati, Janaki R.R., 1998. "The Distributional Effects of Environmental Tax Reform," Discussion Papers 24140, International Institute for Environment and Development, Environmental Economics Programme.
    5. Parveen Setia & Bengt Hyberg & Daniel Ugarte & Daryll Ray, 1997. "Planting flexibility: Implications for agricultural sustainability," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(3), pages 299-311, August.

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