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The Implications of Geographic Heterogeneity for Multifunctional Rice Policy in Taiwan

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  • Chang, Hung-Hao
  • Boisvert, Richard N.
  • Blandford, David

Abstract

Through empirical simulations of the Taiwanese rice market, we estimate the effects of agricultural policies designed to ensure optimal levels of two multifunctional outputs, groundwater recharge and methane emissions. The settings of policy instruments differ by region to reflect land quality and the conditions of the aquifers. The effects on rice production, resource allocation, and returns to farm assets also differ. Welfare gains are highest if transboundary costs of methane emissions are taken into account. National payments set as a weighted average of optimal regional payments may result in similar welfare gains at lower administrative costs. The costs of assistance measures to help farmers adapt to the impact of lower asset values are shown to be less than under current support policies.

Suggested Citation

  • Chang, Hung-Hao & Boisvert, Richard N. & Blandford, David, 2006. "The Implications of Geographic Heterogeneity for Multifunctional Rice Policy in Taiwan," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25254, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25254
    DOI: 10.22004/ag.econ.25254
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    References listed on IDEAS

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    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Lichtenberg, Erik, 2004. "Some Hard Truths About Agriculture and the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), pages 1-10, April.
    3. Chang, Hung-Hao & Boisvert, Richard N. & Blandford, David, 2005. "Achieving Environmental Objectives Under Reduced Domestic Agricultural Support and Trade Liberalization: An Empirical Application to Taiwan," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), pages 1-16, April.
    4. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
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