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Evaluating the Market and Welfare Impacts of Agricultural Policies in Developed Countries: Comparison of Partial and General Equilibrium Measures

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  • Alexandre Gohin
  • GianCarlo Moschini

Abstract

We revisit the question of choosing partial equilibrium or general equilibrium modeling in applied policy analysis in the context of evaluating the effects of a complete phase-out of the Common Agricultural Policy (CAP) of the European Union. We compare the results of three models—two three-sector general equilibrium models (one with an additional major distortion in the nonagricultural sector) and a two-sector partial equilibrium model. We find that the market effects of a complete phase-out of the CAP are quite comparable across these models. On the other hand, the measured welfare impacts may depend on the modeling choice.

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  • Alexandre Gohin & GianCarlo Moschini, 2006. "Evaluating the Market and Welfare Impacts of Agricultural Policies in Developed Countries: Comparison of Partial and General Equilibrium Measures," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 195-211.
    • Handle: RePEc:oup:revage:v:28:y:2006:i:2:p:195-211.
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    2. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "WTO Discipline and the CAP: the Constraints on the EU Sugar Sector," Working Papers 18872, TRADEAG - Agricultural Trade Agreements.
    3. Pavel Ciaian & d'Artis Kancs & Sergio Gomez y Paloma, 2010. "Distributional Effects of CAP Subsidies: Micro Evidence from the EU," EERI Research Paper Series EERI_RP_2010_05, Economics and Econometrics Research Institute (EERI), Brussels.
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    5. Gohin, Alexandre & Bureau, Jean-Christophe, 2005. "Sugar Market Liberalization: Modeling the EU Supply of "C" Sugar," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24740, European Association of Agricultural Economists.
    6. Louis-Pascal Mahé, 2004. "Compte rendu d'ouvrage - Les apports de l’économie rurale des 20 dernières années à travers le Tome 2 du Handbook of Agricultural Economics," Post-Print hal-01201083, HAL.
    7. Jean-Christophe Bureau & Sébastien Jean, 2013. "International Agricultural Trade and Negotiations : Coping with a New Landscape," FOODSECURE Working papers 8, LEI Wageningen UR.
    8. Robert M´barek & Ivelin Iliev Rizov, 2013. "European Coexistence Bureau. Best Practice Documents for coexistence of genetically modified crops with conventional and organic farming. 3. Coexistence of genetically modified maize and honey product," JRC Research Reports JRC84850, Joint Research Centre.
    9. Glebe, Thilo & Latacz-Lohmann, Uwe, 2007. "Agricultural multifunctionality and trade liberalisation," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 82.
    10. Joseph Palazzo & Roland Geyer & Sangwon Suh, 2020. "A review of methods for characterizing the environmental consequences of actions in life cycle assessment," Journal of Industrial Ecology, Yale University, vol. 24(4), pages 815-829, August.
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    12. Mahé, Louis-Pascal, 2004. "Compte rendu d'ouvrage - Les apports de l’économie rurale des 20 dernières années à travers le Tome 2 du Handbook of Agricultural Economics," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 73.
    13. Gohin, Alexandre & Rault, Arnaud, 2013. "Assessing the economic costs of a foot and mouth disease outbreak on Brittany: A dynamic computable general equilibrium analysis," Food Policy, Elsevier, vol. 39(C), pages 97-107.
    14. Thilo Glebe & Uwe Latacz-Lohmann, 2007. "Agricultural multifunctionality and trade liberalisation," Post-Print hal-01201147, HAL.
    15. Niemi, Jyrki S. & Fahlbeck, Erik & Hofreither, Markus F., 2005. "Ten Years After - Welfare Effects of the Application of the CAP in Austria, Finland and Sweden," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24767, European Association of Agricultural Economists.
    16. Louis-Pascal Mahé, 2004. "Compte rendu d'ouvrage - Les apports de l’économie rurale des 20 dernières années à travers le Tome 2 du Handbook of Agricultural Economics," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 73, pages 142-176.
    17. Gohin, Alexandre & Rault, Arnaud, 2012. "Assessing the economic costs of an outbreak of Foot and Mouth Disease on Brittany: A dynamic computable general equilibrium," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134712, Agricultural Economics Society.
    18. Shuyang Chen & Mingyu Li & Can Wang, 2023. "The primary benefits of the Nationwide Emission Trading Scheme in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 28(8), pages 1-17, December.
    19. Hess, Sebastian & von Cramon-Taubadel, Stephan, 2007. "Assessing general and partial equilibrium simulations of Doha round outcomes using meta-analysis," University of Göttingen Working Papers in Economics 67, University of Goettingen, Department of Economics.
    20. Abler, David G., 2006. "Approaches to Measuring the Effects of Trade Agreements," Commissioned Papers 140762, Canadian Agricultural Trade Policy Research Network.
    21. Thilo Glebe & Uwe Latacz-Lohmann, 2007. "Agricultural multifunctionality and trade liberalisation," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 82, pages 57-73.
    22. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "Bridging Micro- and Macro-Analyses of the EU Sugar Program: Methods and Insights," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25799, International Association of Agricultural Economists.
    23. Brockmeier, Martina & Bektasoglu, Beyhan, 2014. "Model structure or data aggregation level: Which leads to greater bias of results?," Economic Modelling, Elsevier, vol. 38(C), pages 238-245.

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