Welfare Impacts of Alternative Public Policies for Environmental Protection in Agriculture in an Open Economy: A General Equilibrium Framework
Taheripour, Farzad
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https://hdl.handle.net/2142/82985
Description
Title
Welfare Impacts of Alternative Public Policies for Environmental Protection in Agriculture in an Open Economy: A General Equilibrium Framework
Author(s)
Taheripour, Farzad
Issue Date
2006
Doctoral Committee Chair(s)
Nelson, Charles H.
Department of Study
Agricultural and Consumer Economics
Discipline
Agricultural and Consumer Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Political Science, Public Administration
Language
eng
Abstract
In contrast to previous studies in the field of environmental regulation in the presence of distortionary income taxes, this dissertation shows that examined policies, except for land retirement, may generate a double-dividend (an economic gain over and above the environmental gains) for two main reasons: pre-existing agricultural support subsidies and exports of agricultural products. The extent of the welfare gains differ across policies and with the nitrogen reduction target. In addition, this dissertation shows that a two-part instrument (a combination of implementable market based policies which restrict crop production and encourage farmers to reduce applied nitrogen) can be used to reduce agricultural pollution. The two-part instruments can be defined in terms of a budget reform in agricultural subsidies. Furthermore, this dissertation illustrates that when land and nitrogen fertilizer are substitutable, retiring croplands may raise the demand for nitrogen and cause more nitrogen pollution. It also shows that taxing applied nitrogen may perform better than taxing nitrogen pollution in the presence of agricultural subsidies in an open economy.
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