AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a...

12
AGRICULTURE AND AGRICULTURAL POLICY • Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced. It reduces the cost to the farmer of supplying the good and moves the supply curve down and out.

Transcript of AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a...

Page 1: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

AGRICULTURE AND AGRICULTURAL POLICY

• Subsidies– effects on price and output– the incidence of a subsidy

– Subsidy is an amount paid for every unit produced. It reduces the cost to the farmer of supplying the good and moves the supply curve down and out.

Page 2: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs in which the country is self-sufficient 1

P

Q O

D

Qe

Pe

S

Page 3: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs in which the country is self-sufficient

P

Q O

D

Qe

Pe

S + subsidy

S

Page 4: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs in which the country is self-sufficient

P

Q O

D

Q1Qe

Pe

P1

S + subsidy

S Note at Pe farmers willing to supply Q2,

But then Supply exceeds demand

Q2

so price must fall to P1

Page 5: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs in which the country is self-sufficient 2

P

Q O

D

Q1Qe

Pe

Pg

P1

S + subsidy

S

Subs

idy

Page 6: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs in which the country is self-sufficient

P

Q O

D

Q1Qe

Pe

Pg

P1

S + subsidy

S

Subs

idy Note two parts to the subsidy in

this example:

1. Getting higher price Pg

2. But also selling more, S1

Depends on pD

Page 7: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs which are partly imported

P

Q O

D

Pw

SEU

Sworld

Page 8: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs which are partly imported

P

Q O

D

Qd

Pw

SEU

Sworld

QS1Imports

Page 9: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs which are partly imported

P

Q O

D

Qd

Pw

S + subsidy

SEU

Sworld

QS1

Page 10: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

Effect of subsidies on foodstuffs which are partly imported

P

Q O

D

QS2Qd

Pw

S + subsidy

SEU

Sworld

QS1Imports

Page 11: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

P

Q O

D

QS2Qd

Pw

Pg

S + subsidy

SEU

Sworld

QS1

Effect of subsidies on foodstuffs which are partly imported

Page 12: AGRICULTURE AND AGRICULTURAL POLICY Subsidies – effects on price and output – the incidence of a subsidy – Subsidy is an amount paid for every unit produced.

P

Q O

D

QS2Qd

Pw

Pg

S + subsidy

SEU

Sworld

QS1

Effect of subsidies on foodstuffs which are partly imported


 · Web viewThe 618C report is a 4 page summary which provides a view of the subsidy data by area and county. Numbers of children with existing subsidies, new subsidies and subsidies

 · Web viewThe 618C report is a 4 page summary which provides a view of the subsidy data by area and county. Numbers of children with existing subsidies, new subsidies and subsidies

The Use of Input Subsidies in Developing Countries - … ·  · 2016-03-29THE USE OF INPUT SUBSIDIES IN DEVELOPING COUNTRIES ... objectives of input subsidy programmes ... national

The Use of Input Subsidies in Developing Countries - … ·  · 2016-03-29THE USE OF INPUT SUBSIDIES IN DEVELOPING COUNTRIES ... objectives of input subsidy programmes ... national

Local Corruption and Popular Support for Fuel Subsidy ... · 2011, government expenditures on fossil fuel subsidies summed to nearly $500 billion globally, and most of the subsidy

Local Corruption and Popular Support for Fuel Subsidy ... · 2011, government expenditures on fossil fuel subsidies summed to nearly $500 billion globally, and most of the subsidy

Fertilizer subsidies: What do we know from international ... · The rationales for fertilizer subsidies – what do we ... India: Agricultural sector ... Subsidy “effective rate”

Fertilizer subsidies: What do we know from international ... · The rationales for fertilizer subsidies – what do we ... India: Agricultural sector ... Subsidy “effective rate”

Fossil-Fuel Subsidy Reform Mitigating emissions through ... · Fossil-Fuel Subsidies • Consumer Subsidies: $548 billion (2013), Producer Subsidies: est. $88 billion – A fossil-fuel

Fossil-Fuel Subsidy Reform Mitigating emissions through ... · Fossil-Fuel Subsidies • Consumer Subsidies: $548 billion (2013), Producer Subsidies: est. $88 billion – A fossil-fuel

Year 13 Economics Subsidy. Questions 1. Which farmers are being given the subsidies? 2. Who is (was) Chirac? 3. How does the cartoon define subsidies?

Year 13 Economics Subsidy. Questions 1. Which farmers are being given the subsidies? 2. Who is (was) Chirac? 3. How does the cartoon define subsidies?

Wage subsidies for youth - International Labour Organization · What works in wage subsidies for young people: A review of issues, theory, ... subsidy, the subsidized worker carries

Wage subsidies for youth - International Labour Organization · What works in wage subsidies for young people: A review of issues, theory, ... subsidy, the subsidized worker carries

EVALUATING THE CASE FOR EXPORT SUBSIDIES ...ap2231/Policy Papers/export-subsidy...EVALUATING THE CASE FOR EXPORT SUBSIDIES Arvind Panagariya* *Department of Economics, University of

EVALUATING THE CASE FOR EXPORT SUBSIDIES ...ap2231/Policy Papers/export-subsidy...EVALUATING THE CASE FOR EXPORT SUBSIDIES Arvind Panagariya* *Department of Economics, University of

Briefing on Tariff Review - Tenaga Nasional · 2015-10-02 · importance of subsidy rationalisation Subsidy rationalisation critical for Malaysia’s growth Rationalisation of subsidies

Briefing on Tariff Review - Tenaga Nasional · 2015-10-02 · importance of subsidy rationalisation Subsidy rationalisation critical for Malaysia’s growth Rationalisation of subsidies

Agricultural Subsidy Incidence

Agricultural Subsidy Incidence

Subsidy Reform and Sustainable Development - CBD...Subsidy Reform and Sustainable Development POLITICAL ECONOMY ASPECTS OECD Sustainable Development Studies Unsustainable subsidies

Subsidy Reform and Sustainable Development - CBD...Subsidy Reform and Sustainable Development POLITICAL ECONOMY ASPECTS OECD Sustainable Development Studies Unsustainable subsidies

WTO Agreement on Subsidies and Countervailing Measureswtocentre.iift.ac.in/CBP/Subsidy Presentation.pdf · WTO Agreement on Subsidies and Countervailing Measures ... of funds or liabilities

WTO Agreement on Subsidies and Countervailing Measureswtocentre.iift.ac.in/CBP/Subsidy Presentation.pdf · WTO Agreement on Subsidies and Countervailing Measures ... of funds or liabilities

WTO Subsidy Notifications: Assessing German …...WTO Subsidy Notifications Assessing German subsidies under the GSI notification template proposed for the WTO April 2008 Prepared

WTO Subsidy Notifications: Assessing German …...WTO Subsidy Notifications Assessing German subsidies under the GSI notification template proposed for the WTO April 2008 Prepared

A Brief Political Economy of Energy Subsidies in the ...€¦ · A Brief Political Economy of Energy Subsidies in the ... hydrocarbon riches in return for citizens ... subsidy reform

A Brief Political Economy of Energy Subsidies in the ...€¦ · A Brief Political Economy of Energy Subsidies in the ... hydrocarbon riches in return for citizens ... subsidy reform

All-India Perspective - NIPFP. Subsidies An All... · Subsidies: An All-India Perspective Anall-India perspective on the extent of subsidies can be provided by putting together subsidy

All-India Perspective - NIPFP. Subsidies An All... · Subsidies: An All-India Perspective Anall-India perspective on the extent of subsidies can be provided by putting together subsidy

FOSSIL FuEL SuBSIDIES IN THAILAND - Asian … · Fossil Fuel Subsidies in Thailand: Trends, ... adequate reallocation of subsidy savings, the short-term adverse impacts of subsidy

FOSSIL FuEL SuBSIDIES IN THAILAND - Asian … · Fossil Fuel Subsidies in Thailand: Trends, ... adequate reallocation of subsidy savings, the short-term adverse impacts of subsidy

Tackling Perverse Subsidies in Agriculture, Fisheries and ......Overall, reliable data on fisheries subsidy schemes remains scarce. Developed country subsidy programmes are complex

Tackling Perverse Subsidies in Agriculture, Fisheries and ......Overall, reliable data on fisheries subsidy schemes remains scarce. Developed country subsidy programmes are complex

Subsidy Swap: Reducing fossil fuel subsidies through ...

Subsidy Swap: Reducing fossil fuel subsidies through ...

Overview of Subsidy Reform in the APEC Region APEC Technical Workshop on Fossil-Fuel Subsidy Reform Peter Wooders, Global Subsidies Initiative 18 October.

Overview of Subsidy Reform in the APEC Region APEC Technical Workshop on Fossil-Fuel Subsidy Reform Peter Wooders, Global Subsidies Initiative 18 October.

On the incidence of renewable energy subsidies into …...In 2012, the subsidy for electricity produced by wind turbines - intro-duced with the Renewable Energy Act (REA) in Germany

On the incidence of renewable energy subsidies into …...In 2012, the subsidy for electricity produced by wind turbines - intro-duced with the Renewable Energy Act (REA) in Germany