Optimal Provision of Public Goods. Implications for Support to Agriculture.

16 Pages Posted: 6 Feb 2010

See all articles by Rolf Jens Brunstad

Rolf Jens Brunstad

Norwegian School of Economics (NHH)

Erling Vardal

University of Bergen - Department of Economics

Ivar Gaasland

Institute for Research in Economics and Business Administration (SNF)

Date Written: March 28, 2007

Abstract

This paper summarises a decade of research by the authors into the welfare economic foundations for agricultural policy. The main results are that the levels of support to agriculture in rich developed countries like Norway are way out of proportion with what could conceivably be defended by welfare theoretic arguments. However, the present debate on the multifunctional role of agriculture points to valid arguments for agricultural support. In terms of welfare economics these arguments are found in the links between agriculture and public goods like landscape amenities and food security. This paper offers a modest attempt to quantify the Pigouvian subsidies that could be derived from these arguments.

Keywords: Food security, landscape preservation, public goods, Pigouvian subsidies

JEL Classification: Q18, Q26

Suggested Citation

Brunstad, Rolf Jens and Vardal, Erling and Gaasland, Ivar, Optimal Provision of Public Goods. Implications for Support to Agriculture. (March 28, 2007). NHH Dept. of Economics Discussion Paper No. 6/2007, Available at SSRN: https://ssrn.com/abstract=1547888 or http://dx.doi.org/10.2139/ssrn.1547888

Rolf Jens Brunstad (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Erling Vardal

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway

Ivar Gaasland

Institute for Research in Economics and Business Administration (SNF) ( email )

Breiviksveien 40
Bergen, N-5045
Norway

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