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Environmental policies for a multifunctional agricultural sector in open economies

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  • Jeffrey M. Peterson
  • Richard N. Boisvert
  • Harry de Gorter
Abstract
This paper derives the efficient set of policies for a multifunctional agriculture and relates them to trade. In general, efficiency cannot be achieved through simple output subsidies, but the efficient policies to move closer to socially optimal levels of multifunctional, non-commodity outputs may also change commodity output levels. Accounting for international price effects, large importing and exporting nations have incentives to favour subsidies for non-commodity outputs and to oppose them, respectively, regardless of the true value of these agriculturally related public goods. The policy incentives are illustrated through a stylised simulation of US agriculture. Copyright 2002, Oxford University Press.

Suggested Citation

  • Jeffrey M. Peterson & Richard N. Boisvert & Harry de Gorter, 2002. "Environmental policies for a multifunctional agricultural sector in open economies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(4), pages 423-443, December.
    • Handle: RePEc:oup:erevae:v:29:y:2002:i:4:p:423-443
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