IDEAS home Printed from https://ideas.repec.org/a/oup/revage/v24y2002i2p322-335..html
   My bibliography  Save this article

Multifunctionality and Agricultural Trade Negotiations

Author

Listed:
  • Philip L. Paarlberg
  • Maury Bredahl
  • John G. Lee

Abstract

Differing views of multifunctionality—attributing nonmarket benefits to agricultural production—continue to be an obstacle in World Trade Organization (WTO) negotiations. Some nations see multifunctionality as justifying subsidies to agricultural production; others see it as disguised protection. This paper shows that while multifunctionality never justifies trade interventions, it can justify production subsidies or taxes. Recognizing that the subsidies or taxes can be economically efficient policies, nations must precisely define and value the externalities in order to design policies and defend those interventions in the WTO. Trade rules are developed that accommodate domestic policy intervention while preventing disguised protection.

Suggested Citation

  • Philip L. Paarlberg & Maury Bredahl & John G. Lee, 2002. "Multifunctionality and Agricultural Trade Negotiations," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 322-335.
    • Handle: RePEc:oup:revage:v:24:y:2002:i:2:p:322-335.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/1467-9353.00022
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
    2. 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.
    3. Daniel McFadden, 1994. "Contingent Valuation and Social Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 689-708.
    4. Walsh, Richard G. & Johnson, Donn M. & McKean, John R., 1989. "Issues In Nonmarket Valuation And Policy Application: A Retrospective Glance," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-11, July.
    5. Shane, Mathew D. & von Witzke, Harald, 1993. "The Environment, Government Policies, and International Trade: A Proceedings," Staff Reports 278700, United States Department of Agriculture, Economic Research Service.
    6. Leger, Lawrence A, 1995. "Environmental Degradation as an Incentive for Trade," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 307-318, October.
    7. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
    8. W. David Eberle & F. Gregory Hayden, 1991. "Critique of Contingent Valuation and Travel Cost Methods for Valuing Natural Resources and Ecosystems," Journal of Economic Issues, Taylor & Francis Journals, vol. 25(3), pages 649-687, September.
    9. Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
    10. Bergstrom, John C. & Stoll, John R., 1989. "Application Of Experimentatal Economics Concepts And Precepts To Cvm Field Survey Procedures," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-12, July.
    11. Mullarkey, Daniel J. & Cooper, Joseph C. & Skully, David W., 2001. ""Multifunctionality" and Agriculture: Do Mixed Goals Distort Trade?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 16(1), pages 1-4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lehtonen, Heikki & Lankoski, Jussi E. & Niemi, Jyrki S., 2005. "Evaluating the Impact of Alternative Agricultural Policy Scenarios on Multifunctionality: A Case Study of Finland," ENARPRI Working Papers 25137, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    2. Lehtonen, Heikki & Lankoski, Jussi E. & Niemi, Jyrki S. & Ollikainen, Markku, 2005. "The Impacts of Alternative Policy Scenarios on Multifunctionality," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24459, European Association of Agricultural Economists.
    3. Weber, Gerald, 2003. "Internationaler Handel und multifunktionale Landwirtschaft : Ein Agrarsektormodell zur Analyse Politischer Optionen und Entscheidungsunterstutzung," Working Paper Series 18824, Humboldt University Berlin, Department of Agricultural Economics.
    4. Abler, David, 2004. "Multifunctionality, Agricultural Policy, and Environmental Policy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(1), pages 8-17, April.
    5. Blank, Steven C., 2010. "Economic Sustainability in the Evolving World: Implications for American Agriculture and Economists," Western Economics Forum, Western Agricultural Economics Association, vol. 9(1), pages 1-8.
    6. Schmid, Erwin & Sinabell, Franz, 2004. "Multifunctionality of Agriculture: Political Concepts, Analytical Challenges and an Empirical Case Study," Discussion Papers DP-08-2004, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    7. Guyomard, Herve & Le Bris, Katell, 2003. "Multifunctionality, Agricultural Trade and WTO Negotiations: A Review of Interactions and Issues," ENARPRI Working Papers 25135, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    8. Kym Anderson, 2005. "Agricultural trade reform and poverty reduction in developing countries," Chapters, in: Sisira Jayasuriya (ed.), Trade Policy Reforms and Development, chapter 9, Edward Elgar Publishing.
    9. Colyer, Dale, 2004. "Environmental Provisions in Trade Agreements," Conference Papers 19103, West Virginia University, Department of Agricultural Resource Economics.
    10. Moon, Wanki & Griffith, Jacob Wayne, 2011. "Assessing holistic economic value for multifunctional agriculture in the US," Food Policy, Elsevier, vol. 36(4), pages 455-465, August.
    11. Moon, Wanki & Chang, Jae Bong & Asirvatham, Jebaraj, 2016. "Identifying Factors Driving US Citizens’ Preferences about Multifunctional Agriculture," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230032, Southern Agricultural Economics Association.
    12. Chuen Khee Pek & Fang Ee & Foo, 2022. "Agricultural Multifunctionality For Sustainable Development In Malaysia: A Contingent Valuation Method Approach," Malaysian Journal of Sustainable Agriculture (MJSA), Zibeline International Publishing, vol. 6(1), pages 1-6, January.
    13. Zhang, Yingnan & Long, Hualou & Chen, Shuocun & Ma, Li & Gan, Muye, 2023. "The development of multifunctional agriculture in farming regions of China: Convergence or divergence?," Land Use Policy, Elsevier, vol. 127(C).
    14. Kym Anderson, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," WIDER Working Paper Series DP2003-25, World Institute for Development Economic Research (UNU-WIDER).
    15. Colyer, Dale, 2004. "Environmental Regulations And Competitiveness," Working Papers 19100, West Virginia University, Department of Agricultural Resource Economics.
    16. Benner, Eckhard, 2005. "Grenzen einer umwelt- und qualitätsorientierten Gestaltung der Gemeinsamen Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    17. FRASER Iain & WASCHIK Robert, 2010. "Agricultural Land Retirement for Biodiversity: The Australian Wool Industry," EcoMod2003 330700055, EcoMod.
    18. Jan & Zawadka & Agata & Balinska & Piotr & Gabryjonczyk, 2021. "Agritourism as a Form of Free Time Activity Among Families with Kids in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 4), pages 571-582.
    19. Callesen, Gustav Marquard & Lundhede, Thomas Hedemark & Olsen, Søren Bøye & Schou, Jesper Sølver, 2022. "Socioeconomic effects of a bottom-up multifunctional land consolidation project," Land Use Policy, Elsevier, vol. 117(C).
    20. Moon, Wanki, 2010. "Multifunctional Agriculture, Protectionism, And Prospect Of Trade Liberalization," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 33(2), pages 1-33, July.
    21. Herve Guyomard & Katell Le Bris, 2003. "Multifunctionality, agricultural trade and WTO negotiations : a review of interactions and issues [Multifonctionnalité, échanges agricoles et négociations à l'OMC : une synthèse des interactions et," Post-Print hal-02825715, HAL.
    22. Ollikainen, Markku & Lankoski, Jussi E., 2005. "Multifunctional Agriculture: The Effect of Non-Public Goods on Socially Optimal Policies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24611, European Association of Agricultural Economists.
    23. Rude, James & Meilke, Karl D., 2005. "Implications of the July 2004 WTO Framework Agreement for Canadian Agriculture," Commissioned Papers 24159, Canadian Agricultural Trade Policy Research Network.
    24. Colyer, Dale, 2004. "Environmental Regulations and Agricultural Competitiveness," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-17.
    25. Colyer, Dale, 2004. "Land, Land Use and Competitiveness," Working Papers 19099, West Virginia University, Department of Agricultural Resource Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    2. Bohara, Alok K. & McKee, Michael & Berrens, Robert P. & Jenkins-Smith, Hank & Silva, Carol L. & Brookshire, David S., 1998. "Effects of Total Cost and Group-Size Information on Willingness to Pay Responses: Open Ended vs. Dichotomous Choice," Journal of Environmental Economics and Management, Elsevier, vol. 35(2), pages 142-163, March.
    3. Sande, Doris N. & Mullen, Jeffrey D. & Nzaku, Kilungu, 2009. "Amenity benefits and public policy: An application to the Georgia Pecan Industry," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46851, Southern Agricultural Economics Association.
    4. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(4), pages 469-488, December.
    5. He, Senhui & Florkowski, Wojciech J. & Jordan, Jeffrey L., 2002. "Irrational Responses in Contingent Valuation and Their Potential Impacts on Mean Stated Willingness-to-pay," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24914, European Association of Agricultural Economists.
    6. Richard Bennett & Douglas Larson, 1996. "Contingent Valuation Of The Perceived Benefits Of Farm Animal Welfare Legislation: An Exploratory Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 224-235, January.
    7. Lindhjem, Henrik, 2007. "20 years of stated preference valuation of non-timber benefits from Fennoscandian forests: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 12(4), pages 251-277, February.
    8. Ojea, Elena & Loureiro, Maria L., 2011. "Identifying the scope effect on a meta-analysis of biodiversity valuation studies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 706-724, September.
    9. Haixiao Huang, Walter C. Labys, 2002. "Environment and trade: a review of issues and methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(1/2), pages 100-160.
    10. Robert Kohn, 1998. "Environmental Protection by One or Both Trading Partners in a Heckscher-Ohlin-Samuelson Model," Open Economies Review, Springer, vol. 9(4), pages 327-342, October.
    11. Kenneth Løvold RØDSETH, 2008. "Efficient Supply of Cultural Landscape in a CGE Framework," EcoMod2008 23800116, EcoMod.
    12. Felix Schläpfer, 2021. "Inadequate Standards in the Valuation of Public Goods and Ecosystem Services: Why Economists, Environmental Scientists and Policymakers Should Care," Sustainability, MDPI, vol. 13(1), pages 1-10, January.
    13. K. McConnell* & I. Strand & Sebastián Valdés, 1998. "Testing Temporal Reliability and Carry-over Effect: The Role of Correlated Responses in Test-retest Reliability Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 357-374, October.
    14. Fisher, Ann & Wheeler, William J. & Zwick, Rami, 1993. "Experimental Methods in Agricultural and Resource Economics: How Useful are They?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(2), pages 103-116, October.
    15. Javier Lozano Ibáñez & Javier Rey-Maquieira Palmer & Carlos Mario Gómez Gómez, 2004. "Land, Environmental Externalities and Tourism Development," Working Papers 2004.22, Fondazione Eni Enrico Mattei.
    16. Schlapfer, Felix, 2008. "Contingent valuation: A new perspective," Ecological Economics, Elsevier, vol. 64(4), pages 729-740, February.
    17. Sælensminde, Kjartan, 2003. "Embedding effects in valuation of non-market goods," Transport Policy, Elsevier, vol. 10(1), pages 59-72, January.
    18. Baylis, Kathy & Peplow, Stephen & Rausser, Gordon & Simon, Leo, 2008. "Agri-environmental policies in the EU and United States: A comparison," Ecological Economics, Elsevier, vol. 65(4), pages 753-764, May.
    19. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2449-2466, August.
    20. Langford, Ian H. & Bateman, Ian J., 1996. "Elicitation and truncation effects in contingent valuation studies," Ecological Economics, Elsevier, vol. 19(3), pages 265-267, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:revage:v:24:y:2002:i:2:p:322-335.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.