Premium
Agriculture as a provider of public goods: a case study for Norway
Author(s) -
Brunstad Rolf Jens,
Gaasland Ivar,
Vårdal Erling
Publication year - 1995
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1995.tb00369.x
Subject(s) - referendum , subsidy , agriculture , norwegian , agreement on agriculture , treaty , public good , accession , argument (complex analysis) , population , common agricultural policy , price support , economics , international trade , business , public economics , european union , political science , market economy , geography , microeconomics , law , sociology , linguistics , philosophy , biochemistry , chemistry , demography , archaeology , politics
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.