How to Design a Targeted Agricultural Subsidy System: Efficiency or Equity?
(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:
https://lup.lub.lu.se/record/2970816
- author
- Cong, Ronggang LU and Brady, Mark LU
- organization
- publishing date
- 2012
- type
- Contribution to journal
- publication status
- published
- subject
- in
- PLoS ONE
- volume
- 7
- issue
- 8
- article number
- e41225
- publisher
- Public Library of Science (PLoS)
- external identifiers
-
- pmid:22876283
- wos:000307184700011
- scopus:84864490066
- pmid:22876283
- ISSN
- 1932-6203
- DOI
- 10.1371/journal.pone.0041225
- language
- English
- LU publication?
- yes
- id
- 9dadda84-4852-4f30-8aa4-e4b554055694 (old id 2970816)
- date added to LUP
- 2016-04-01 13:13:19
- date last changed
- 2023-09-30 22:43:21
@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.}}, author = {{Cong, Ronggang and Brady, Mark}}, issn = {{1932-6203}}, language = {{eng}}, number = {{8}}, publisher = {{Public Library of Science (PLoS)}}, series = {{PLoS ONE}}, title = {{How to Design a Targeted Agricultural Subsidy System: Efficiency or Equity?}}, url = {{https://lup.lub.lu.se/search/files/3237768/7470693}}, doi = {{10.1371/journal.pone.0041225}}, volume = {{7}}, year = {{2012}}, }