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Agriculture as a provider of public goods: a case study for Norway

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  • Rolf Jens Brunstad
  • Ivar Gaasland
  • Erling Vårdal

Abstract

A valid argument for support is that subsidies are remedies for market failures. Agriculture contributes positively to public goods as food security, landscape preservation and maintenance of population in remote areas. Using a numerical model we simulate what Norwegian agriculture would look like if the only purpose of supporting agriculture was to provide such public goods. This is compared to the consequences of the Uruguay round in GATT and possible future EU membership for Norwegian agriculture. Although the GATT agreement will change agriculture in the desirable direction, the agreement puts no substantial pressure on the current agricultural policy. EU membership on the lines laid down by the accession treaty between EU and Norway prior to the referendum in 1994 would have given a stronger impetus towards the optimal solution.

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  • Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1995. "Agriculture as a provider of public goods: a case study for Norway," Agricultural Economics, International Association of Agricultural Economists, vol. 13(1), pages 39-49, October.
    • Handle: RePEc:bla:agecon:v:13:y:1995:i:1:p:39-49
    DOI: 10.1111/j.1574-0862.1995.tb00369.x
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    1. Drake, Lars, 1992. "The Non-market Value of the Swedish Agricultural Landscape," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(3), pages 351-364.
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    5. Mehrjou, Saeed & Kiani-Feyzabad, Zahra, 2016. "The Effect of Agricultural Production Subsidies Reduction in the Economic Variables of Agricultural Sector of Iran: Multifunctional Assessment in CGE Model," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(1), March.
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    9. Andrzej Czyżewski & Ryszard Kata & Anna Matuszczak, 2022. "Expenditure of Poland’s Agricultural Budgets in the Context of Selected Macroeconomic Relations," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 41-66.
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