Brady, Mark
- Department of Economics, Swedish University of Agricultural Sciences
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.
Published in
PLoS ONE
2012, volume: 7, number: 8, pages: 1-12
Publisher: Public Library of Science
SLU Authors
Global goals (SDG)
UKÄ Subject classification
Economics
Publication identifier
- DOI: https://doi.org/10.1371/journal.pone.0041225
Permanent link to this page (URI)
https://res.slu.se/id/publ/39438