How to design a targeted agricultural subsidy system: efficiency or equity?
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ABSTRACT:
SUBMITTER: Cong RG
PROVIDER: S-EPMC3410909 | biostudies-literature | 2012
REPOSITORIES: biostudies-literature
Publications
How to design a targeted agricultural subsidy system: efficiency or equity?
Cong Rong-Gang RG Brady Mark M
PloS one 20120802 8
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 ...[more]
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