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


The Incidence of Public Services and Subsidies in Peru · The Incidence of Public Services and Subsidies in Peru ... Alberto Padilla ... Saúl Paredes (Banco Central de Reserva),

The Incidence of Public Services and Subsidies in Peru · The Incidence of Public Services and Subsidies in Peru ... Alberto Padilla ... Saúl Paredes (Banco Central de Reserva),

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

Tax Incidence with Endogenous Quality and Costly ...sallee/hev_incidence_september_09_.pdf · subsidies in particular, incidence is central because the subsidies are often sold to

Tax Incidence with Endogenous Quality and Costly ...sallee/hev_incidence_september_09_.pdf · subsidies in particular, incidence is central because the subsidies are often sold to

Sustainability of Flemish subsidies: casestudies on direct payments and the renovation subsidy

Sustainability of Flemish subsidies: casestudies on direct payments and the renovation subsidy

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_ Shailja... · 2012-03-23 · WTO Agreement on Subsidies and Countervailing

WTO Agreement on Subsidies and Countervailing Measureswtocentre.iift.ac.in › CBP › Subsidy Presentation_ Shailja... · 2012-03-23 · WTO Agreement on Subsidies and Countervailing

OECD Sustainable Development Studies : Subsidy … Sustainable Development Studies SUBSIDY REFORM AND SUSTAINABLE DEVELOPMENT Economic, Environmental and Social Aspects Subsidies are

OECD Sustainable Development Studies : Subsidy … Sustainable Development Studies SUBSIDY REFORM AND SUSTAINABLE DEVELOPMENT Economic, Environmental and Social Aspects Subsidies are

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

Capital Markets Day 2008 - Nokia = less vulnerable to decreasing subsidies High subsidy markets – e.g. USA, UK Medium subsidy markets – e.g. Spain Low subsidy markets – e.g.

Capital Markets Day 2008 - Nokia = less vulnerable to decreasing subsidies High subsidy markets – e.g. USA, UK Medium subsidy markets – e.g. Spain Low subsidy markets – e.g.

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

Agricultural Subsidy Incidence

Agricultural Subsidy Incidence

Indirect taxes and subsidies Chapter 12. Taxes and Subsidies An indirect tax is…. A subsidy is….

Indirect taxes and subsidies Chapter 12. Taxes and Subsidies An indirect tax is…. A subsidy is….

Incidence and impact The regional variation of poverty ... · fuel subsidies in Nigeria. Uncompensated subsidy removal is estimated to increase the national poverty rate by 3–4%

Incidence and impact The regional variation of poverty ... · fuel subsidies in Nigeria. Uncompensated subsidy removal is estimated to increase the national poverty rate by 3–4%

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”

ENVIRONMENTALLY HARMFUL SUBSIDIES IN GERMANY · 1 Importance of environment-oriented subsidy controlling 35 2 First phase: Screening of environmentally harmful subsidies 36 3 Second

ENVIRONMENTALLY HARMFUL SUBSIDIES IN GERMANY · 1 Importance of environment-oriented subsidy controlling 35 2 First phase: Screening of environmentally harmful subsidies 36 3 Second

Impact of government subsidies for electric vehicles on ... · Information supplied by Quattroruote Professional UK Direct subsidies Within the UK, a direct purchase subsidy of 25%

Impact of government subsidies for electric vehicles on ... · Information supplied by Quattroruote Professional UK Direct subsidies Within the UK, a direct purchase subsidy of 25%

Subsidy Swap: Reducing fossil fuel subsidies through ...

Subsidy Swap: Reducing fossil fuel subsidies through ...

Adoption Subsidies Guide · Nonrecurring Adoption Expenses Subsidy 8 State Adoption Subsidy Programs 11 State Adoption Maintenance Subsidy 11 Post Adoption Special Services Subsidy

Adoption Subsidies Guide · Nonrecurring Adoption Expenses Subsidy 8 State Adoption Subsidy Programs 11 State Adoption Maintenance Subsidy 11 Post Adoption Special Services Subsidy

The Friends of Fossil Fuel Subsidy Reform Networkfffsr.org/wp-content/uploads/2018/12/FFFsR-network-BROCHURE.pdf · Fossil Fuel Subsidy Reform Network Why reform fossil fuel subsidies?

The Friends of Fossil Fuel Subsidy Reform Networkfffsr.org/wp-content/uploads/2018/12/FFFsR-network-BROCHURE.pdf · Fossil Fuel Subsidy Reform Network Why reform fossil fuel subsidies?

Subsidies Enforcement Report to Congress 2018 · INTRODUCTION ... FOREIGN CVD AND SUBSIDY INVESTIGATIONS OF U.S. EXPORTS..... 48 U.S. MONITORING OF SUBSIDY ... the Subsidies Agreement

Subsidies Enforcement Report to Congress 2018 · INTRODUCTION ... FOREIGN CVD AND SUBSIDY INVESTIGATIONS OF U.S. EXPORTS..... 48 U.S. MONITORING OF SUBSIDY ... the Subsidies Agreement