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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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    2. Gaasland, Ivar, 2005. "Can a Warmer Climate Save Northern Agriculture?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24551, European Association of Agricultural Economists.
    3. 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.
    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. Loyland, Knut & Ringstad, Vidar, 2000. "Gains and structural effects of exploiting scale-economies in Norwegian dairy production," Agricultural Economics, Blackwell, vol. 24(2), pages 149-166, January.
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    9. Lunnan, Anders, 1997. "Agriculture-based biomass energy supply -- a survey of economic issues," Energy Policy, Elsevier, vol. 25(6), pages 573-582, May.
    10. 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.
    11. 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.
    12. 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.

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