Mark Brady
Policy officer
How to Design a Targeted Agricultural Subsidy System: Efficiency or Equity?
Author
Summary, in English
In this paper we appraise current agricultural subsidy policy in the EU. Several sources of its inefficiency are identified: it is inefficient for supporting farmers’ incomes or guaranteeing food security, and irrational transfer payments decoupled from actual performance that may be negative for environmental protection, social cohesion, etc. Based on a simplified economic model, we prove that there is ‘‘reverse redistribution’’ in the current tax-subsidy system, which cannot be avoided. To find a possible way to distribute subsidies more efficiently and equitably, several alternative subsidy systems (the pure loan, the harvest tax and the income contingent loan) are presented and examined.
Department/s
- Centre for Environmental and Climate Science (CEC)
- AgriFood Economics Centre, Lund University School of Economics and Management
- BECC: Biodiversity and Ecosystem services in a Changing Climate
Publishing year
2012
Language
English
Publication/Series
PLoS ONE
Volume
7
Issue
8
Full text
Document type
Journal article
Publisher
Public Library of Science (PLoS)
Topic
- Earth and Related Environmental Sciences
- Economics
Status
Published
ISBN/ISSN/Other
- ISSN: 1932-6203