Record Details

Does the “green box” of the European Union distort global markets?

Bio-based and Applied Economics

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Field Value
 
Title Does the “green box” of the European Union distort global markets?
 
Creator Mittenzwei, Klaus
Britz, Wolfgang
Wieck, Christine
 
Subject modeling
agricultural policies
domestic support
green box
trade liberalization
 
Description The vast majority of domestic support to farmers in the European Union (EU) is notified in the World Trade Organisation (WTO) green box as decoupled payments. The EU considers this support to minimally distort production and/or trade. As demonstrated in the literature, this claim is questionable. This paper aims at analyzing this claim using a global, spatially differentiated, partial equilibrium simulation model with endogenous land supply functions. Comparing a complete elimination of the EU green box measures with a baseline scenario, the model results indicate only small distortionary effects in production and trade. Hence, EU support notified to the green box seems to be compatible with the general requirements of the green box. The finding seems to result from the assumption of unchanged EU border policies.
 
Publisher Firenze University Press
 
Date 2014-02-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://oaj.fupress.net/index.php/bae/article/view/3248
10.13128/BAE-13622
 
Source Bio-based and Applied Economics; Vol. 3 No. 1 (2014); 1-20
2280-6172
2280-6180
 
Language eng
 
Relation https://oaj.fupress.net/index.php/bae/article/view/3248/3248