Environmental subsidies and companies’ environmental investments

2020 ◽  
pp. 1-20
Author(s):  
Jianbo Song ◽  
Haiqing Zhang ◽  
Zihao Su
Keyword(s):  
Environmental Subsidies

scholarly journals Policy measures to promote mid-summer drainage in paddy fields for a reduction in methane gas emissions: the application of a dynamic, spatial computable general equilibrium model

2019 ◽  
Vol 18 (1) ◽  
pp. 211-222
Author(s):  
Yoji Kunimitsu ◽  
Motoki Nishimori
Keyword(s):  
Climate Change ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Paddy Fields ◽  
Gas Emissions ◽  
Nominal Income ◽  
Rice Prices ◽  
Spatial Computable General Equilibrium ◽  
Environmental Subsidies

Abstract Rice production is affected by climate change, while climate change is simultaneously accelerated by methane gas (CH4) emissions from paddy fields. The rice sector must take suitable mitigation measures, such as prolonging mid-summer drainage (MSD) before the rice flowering period. To propose a mitigation policy, this study aims to demonstrate the environmental and economic effects of MSD in Japanese paddy fields by using a dynamic, spatial computable general equilibrium (CGE) model and crop model; the study also considers environmental subsidies with a carbon tax scheme to promote MSD measures. The results demonstrate that climate change under the 8.5 representative concentration pathway (RCP) scenario will reduce rice prices and rice farmers’ nominal income due to bumper harvests until the 2050s. Promoting MSD in paddy fields can prevent a decrease in farmers’ nominal income and effectively reduce CH4 emissions if all farmers adopt this measure. However, some farmers can potentially increase their own yield by avoiding MSD under high rice prices, which would be maintained through other farmers’ participation. A strong motivation exists for some farmers to gain a “free ride,” and an environmental subsidy with a carbon tax can help motivate farmers to adopt MSD. Therefore, the policy mix of prolonging MSD and environmental subsidies can increase all farmers’ incomes by preventing “free rides” and decrease greenhouse gas emissions with a slight decrease in Japan’s GDP.

Technology Diffusion, Product Differentiation and Environmental Subsidies

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Matthew McGinty ◽  
Frans P de Vries
Keyword(s):  
Product Differentiation ◽  
Technology Diffusion ◽  
Substitution Effect ◽  
Clean Technology ◽  
Environmental Damage ◽  
Diffusion Dynamics ◽  
Imperfectly Competitive ◽  
Environmental Subsidies ◽  
The Relationship ◽  
And Diffusion

Abstract This paper explores the relationship between environmental subsidies, the diffusion of a clean technology, and the degree of product differentiation in an imperfectly competitive market. Like others, we show that the subsidy succeeds in reducing environmental damage only when the substitution effect (the reduction in pollution associated with the clean technology) exceeds the output effect (the extent that the subsidy increases output). Here, we add product differentiation and diffusion dynamics. When the substitution effect dominates, environmental damage decreases monotonically during the diffusion process. The extent of technology diffusion (the degree to which clean technology replaces dirty) is decreasing in the degree of product differentiation. Further, as products become closer substitutes, it is more likely that the subsidy will reduce environmental damage. Finally, the subsidy for clean technology will spill over to the remaining dirty producers, increasing their profit as well. In a free-entry equilibrium, the subsidy decreases pollution when product differentiation is low compared to the relative pollution intensity of the clean technology.

scholarly journals Agri-environmental subsidies and the National Rural Development Plan

2006 ◽  
pp. 52-59
Author(s):  
Ágnes Gyarmati
Keyword(s):  
European Union ◽  
Rural Development ◽  
Agricultural Economics ◽  
Development Plan ◽  
Environment Protection ◽  
The European Union ◽  
Successful Operation ◽  
Environmental Measures ◽  
Environmental Subsidies ◽  
The Eu

The financing of agri-environmental target programs which is a prominent area in the EU became possible during the implementation and successful operation of the National Agricultural Environment Protection Program (NAPP) launched in 2002. Through this program we gained experience in the field agri-environmental measures which are financed from the Guidance Section of European Agricultural and Guarantee Fund in the European Union. The agri-environmental measures which are included in the National Rural Development Plan (NRDP) were implemented in Hungary in the fall of 2004 when the farmers handed in their application after the publishing of the related law. The NAPP financing is still active, but not significant since most farmers have chosen NRDP measures.We are examining the experience of the above programs after studying some theoretical aspects of the agricultural economics and the EU laws. We try to analyse the most important experiences of NAPP including the legal background, news opportunities yielded by target programs, the financing, organisation, and institutional background. We will present the results taking into consideration the data of the winning applicants.

scholarly journals Wooded meadows of Estonia: conservation efforts for agricultural landscape

2008 ◽  
Vol 17 (4) ◽  
pp. 413 ◽  
Author(s):  
M. SAMMUL ◽  
K. KATTAI ◽  
K. LANNO
Keyword(s):  
20Th Century ◽  
Agricultural Landscape ◽  
Habitat Type ◽  
Ecological Condition ◽  
National Scale ◽  
Record Keeping ◽  
Natural Grasslands ◽  
Mowing Regime ◽  
Wooded Meadows ◽  
Environmental Subsidies

We provide an overview of the amount and ecological condition of wooded meadows throughout Estonia after significant changes in agriculture in the second part of 20th century. We also present the first attempt to estimate the success of recent conservation efforts for wooded meadows. Our analysis is based on recent exhaustive inventories. We found that Estonia, despite a decrease of the area in wooded meadows by two orders of magnitude during the 20th century, still has about 8400 ha remaining of which approximately 5800 ha are meadows with, at the least, an intermediate conservation value. The latter is directly dependent on mowing regime. Efforts to preserve wooded meadows include establishment of protected areas and financial support for mowing. The national conservation subsidy has been useful and supportive for wooded meadows, however the total amount of this subsidy has been small compared to the area that could be supported. The much larger funds of agri-environmental subsidies have largely not been available for wooded meadows. Moreover, there has been no record keeping about subsidisation of semi-natural grasslands using agricultural support schemes. Although the preservation of some good examples of wooded meadows in Estonia seems guaranteed, further degradation of this valuable habitat type on a national scale is very probable.;

scholarly journals ENVIRONMENTAL SUSTAINABLE VALUE IN AGRICULTURE REVISITED: HOW INVESTMENT SUBSIDIES FOSTER ECO-EFFICIENCY

2019 ◽  
Vol XXI (4) ◽  
pp. 76-84
Author(s):  
Bazyli Czyżewski ◽  
Anna Matuszczak ◽  
Aleksander Grzelak ◽  
Marta Guth ◽  
Adam Majchrzak
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Cross Sectional ◽  
Policy Makers ◽  
Factor Endowments ◽  
Capital Labor Ratio ◽  
Sustainable Value ◽  
Negative Effect ◽  
Representative Farms ◽  
Environmental Subsidies

Many researchers and policy makers argue that CAP should support small farms mainly through environmental subsidies contributing by this mean to sustainable agriculture. This study offers a methodological contribution to the value-based sustainability approach, consisting of a computing indicator of environmental sustainable value (ESV). In this study, the authors have attempted to combine the value-oriented approach with DEA frontier benchmarking. In the next step, the authors test how investment subsidies contribute to ESV using a long-term panel of FADN region-representative farms in 2004-2015 with regards to other policy measures and factor endowments. The seminal within-between specification was employed to the control time variant and time in-variant space heterogeneity of European regions. The articles main finding is that higher investment support is beneficial for ESV. Other payments exert a negative effect on ESV besides the cross-sectional impact of environmental subsidies. When it comes to factor endowment influence, there is a positive impact of the capital-labor ratio and negative impact of the capital-land ratio.

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