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Political Economy of Agricultural Policies and Environmental Weights

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  • Cemal Atici

    ()

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.

Suggested Citation

  • Cemal Atici, 2008. "Political Economy of Agricultural Policies and Environmental Weights," ICER Working Papers 25-2008, ICER - International Centre for Economic Research.
  • Handle: RePEc:icr:wpicer:25-2008
    as

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    File URL: http://www.biblioecon.unito.it/biblioservizi/RePEc/icr/wp2008/ICERwp25-08.pdf
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    References listed on IDEAS

    as
    1. 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 437-449, November.
    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. 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.
    4. 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.
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    More about this item

    Keywords

    Environmental Weights; Political Preference Functions; EU; Agriculture;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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