IDEAS home Printed from https://ideas.repec.org/p/ags/aaea01/20468.html
   My bibliography  Save this paper

Promoting Multifunctionality While Minimizing Trade Distortion Effects: The Relative Merits Of Traditional Policy Instruments

Author

Listed:
  • Gohin, Alexandre
  • Guyomard, Herve
  • Le Mouel, Chantal

Abstract

In relation to the growing debate around multifunctionality, this paper attempts to classify alternative measures of agricultural income support according to their ability in achieving three policy objectives (supporting agricultural income, promoting positive externalities and reducing negative ones) as well as to their induced trade distortion effects. Four income support programs are considered: a production-linked payment program, a land-based payment program and two decoupled payment programs. Their effectiveness as regards to the three policy objectives and their relatives induce trade distortion effects are examined on an equal cost/support basis through a conceptual framework that allows for free entry in the sector and the land price to adjust endogenously. Analytical results show clearly that no program uniformly dominates others. They also allow to identify the key parameters that have a substantial bearing on the relative merits of these programs.

Suggested Citation

  • Gohin, Alexandre & Guyomard, Herve & Le Mouel, Chantal, 2001. "Promoting Multifunctionality While Minimizing Trade Distortion Effects: The Relative Merits Of Traditional Policy Instruments," 2001 Annual meeting, August 5-8, Chicago, IL 20468, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20468
    DOI: 10.22004/ag.econ.20468
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20468/files/sp01go02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.20468?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alexandre Gohin & Hervé Guyomard & . International Association of Agricultural Economists, 2000. "The Agenda 2000 CAP reform in the WTO context : distortion effects of area compensatory payments and set-aside requirements," Post-Print hal-01931579, HAL.
    2. Hughes, Joseph P, 1980. "The Comparative Statics of the Competitive, Increasing-Cost Industry," American Economic Review, American Economic Association, vol. 70(3), pages 518-521, June.
    3. Brent Hueth, 2000. "The Goals of U.S. Agricultural Policy: A Mechanism Design Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 14-24.
    4. Gohin, Alexandre & Guyomard, Hervé, 2000. "The Agenda 2000 CAP Reform in the WTO Context: Distortion Effects of Compensatory Payments and Area Set-aside Requirements," 2000 Conference, August 13-18, 2000, Berlin, Germany 197222, International Association of Agricultural Economists.
    5. Howard D. Leathers, 1992. "The Market for Land and the Impact of Farm Programs on Farm Numbers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 291-298.
    Full references (including those not matched with items on IDEAS)

    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. Hervé Guyomard & Alexandre Gohin & Chantal Le Mouël, 2001. "Instruments de soutien interne des revenus agricoles, effets de distorsion sur les échanges et multifonctionnalité de l'agriculture," Post-Print hal-01937091, HAL.
    2. Herve Guyomard & Fabrice Levert, 2001. "Multifunctionality, trade distortion effects and agricultural income support : a conceptual framework with free entry and land price endogeneity," Post-Print hal-01593996, HAL.
    3. Gracia, Azucena & de Magistris, Tiziana & Casado, Jose Maria, 2008. "The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6590, European Association of Agricultural Economists.
    4. Bontems, Philippe, 2008. "On the optimal design of income support and agri-environmental regulation," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6246, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Katranidis, Stelios D. & Kotakou, Christina A., 2008. "Are CAP Decoupling Policies Really Production Neutral?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44184, European Association of Agricultural Economists.
    6. Tobias Müller & Jean-Marie Grether, 2002. "Long-Run Effects of the Common Agricultural Policy for Switzerland: A Simulation Analysis," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(III), pages 271-292, September.
    7. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.
    8. Drescher, Klaus & Henderson, Jason R. & McNamara, Kevin T., 2001. "Farmland Price Determinants," 2001 Annual meeting, August 5-8, Chicago, IL 20685, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Margarian, Anne, 2010. "Nachbarschafts- Und Konjunktureffekte: Zur Aufgabewahrscheinlichkeit Landwirtschaftlicher Betriebe," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93961, German Association of Agricultural Economists (GEWISOLA).
    10. Key, Nigel D. & Roberts, Michael J., 2005. "Do Government Payments Influence Farm Business Survival?," 2005 Annual meeting, July 24-27, Providence, RI 19248, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Lin, Wensheng & Huang, Jikun, 2021. "Impacts of agricultural incentive policies on land rental prices: New evidence from China," Food Policy, Elsevier, vol. 104(C).
    12. Laure Latruffe & Chantal Le Mouël, 2009. "Capitalization Of Government Support In Agricultural Land Prices: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 659-691, September.
    13. François Facchini, 1997. "Politique agricole en France et prix de la terre," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00490336, HAL.
    14. Frédéric Courleux & Herve Guyomard & Fabrice Levert & Laurent Piet & . Inra & . Société Française d'Economie Rurale, 2007. "How the EU single farm payment should be modelled: lump-sum transfers, area payments or… something else ?," Post-Print hal-02282245, HAL.
    15. Feng, Hongli, 2007. "Green payments and dual policy goals," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 323-335, November.
    16. Crepin, Anne-Sophie, 2005. "Incentives for wetland creation," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 598-616, November.
    17. Zier, Patrick, 2013. "Econometric impact assessment of the Common Agricultural Policy in East German agriculture," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 71, number 71.
    18. de Lima, Daruichi Pereira & Fioriolli, José Carlos & Padula, Antonio Domingos & Pumi, Guilherme, 2018. "The impact of Chinese imports of soybean on port infrastructure in Brazil: A study based on the concept of the “Bullwhip Effect”," Journal of Commodity Markets, Elsevier, vol. 9(C), pages 55-76.
    19. Bulut, Harun, 2017. "Managing Catastrophic Risk in Agriculture through Ex Ante Subsidized Insurance or Ex Post Disaster Aid," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(3), September.
    20. Witzke, H.P. & Heckelei, T., 1998. "Betrieblicher Strukturwandel unter dem Einfluss ökonomischer Rahmenbedingungen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 34.

    More about this item

    Keywords

    International Relations/Trade;

    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:ags:aaea01:20468. 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: AgEcon Search (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.