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How to Design a Targeted Agricultural Subsidy System: Efficiency or Equity?

Cong, Ronggang LU and Brady, Mark LU (2012) In PLoS ONE 7(8).
Abstract
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.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
PLoS ONE
volume
7
issue
8
publisher
Public Library of Science
external identifiers
  • pmid:22876283
  • wos:000307184700011
  • scopus:84864490066
ISSN
1932-6203
DOI
10.1371/journal.pone.0041225
project
BECC
language
English
LU publication?
yes
id
9dadda84-4852-4f30-8aa4-e4b554055694 (old id 2970816)
date added to LUP
2012-08-13 12:53:32
date last changed
2017-09-03 04:03:27
@article{9dadda84-4852-4f30-8aa4-e4b554055694,
  abstract     = {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.},
  articleno    = {e41225},
  author       = {Cong, Ronggang and Brady, Mark},
  issn         = {1932-6203},
  language     = {eng},
  number       = {8},
  publisher    = {Public Library of Science},
  series       = {PLoS ONE},
  title        = {How to Design a Targeted Agricultural Subsidy System: Efficiency or Equity?},
  url          = {http://dx.doi.org/10.1371/journal.pone.0041225},
  volume       = {7},
  year         = {2012},
}