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

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  • Brunstad, Rolf Jens
  • Gaasland, Ivar
  • Vardal, Erling

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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  • Brunstad, Rolf Jens & Gaasland, Ivar & Vardal, Erling, 1995. "Agriculture as a provider of public goods: a case study for Norway," Agricultural Economics, Blackwell, vol. 13(1), pages 39-49, October.
  • Handle: RePEc:eee:agecon:v:13:y:1995:i:1:p:39-49
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    References listed on IDEAS

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    1. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
    2. Ballenger, Nicole & Mabbs-Zeno, Carl, 1992. "Treating food security and food aid issues at the GATT," Food Policy, Elsevier, vol. 17(4), pages 264-276, August.
    3. Drake, Lars, 1992. "The Non-market Value of the Swedish Agricultural Landscape," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 351-364.
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    Cited by:

    1. Loyland, Knut & Ringstad, Vidar, 2001. "Gains and structural effects of exploiting scale-economies in Norwegian dairy production," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 24(2), January.
    2. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 2005. "Efficiency losses in milk marketing boards - the importance of exports," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 77-97.
    3. Rolf Jens Brunstad & Ivar Gaasland & Erling Vardal, 2005. "Multifunctionality of agriculture: an inquiry into the complementarity between landscape preservation and food security," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(4), pages 469-488, December.
    4. Lunnan, Anders, 1997. "Agriculture-based biomass energy supply -- a survey of economic issues," Energy Policy, Elsevier, vol. 25(6), pages 573-582, May.
    5. Sorensen, Ann-Christin & Tennbakk, Berit, 2002. "Regulatory Institutions in Agricultural Markets: A Comparative Analysis," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24916, European Association of Agricultural Economists.
    6. Kyed, Karsten & Kaergard, Niels & Zobbe, Henrik, 2002. "Multifunctionality and the European Common Agricultural Policy: A Theoretical Problem," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24876, European Association of Agricultural Economists.

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