Environment and economy in the modern agricultural development

Xiaochun Li and Yunyun Wu

Asia-Pacific Journal of Accounting & Economics, 2018, vol. 25, issue 1-2, 163-176

Abstract: This paper establishes a three-sector general equilibrium model to investigate the environmental and economic effects of policies intended to promote modern agriculture. In the model, two situations are considered: In the first situation, the perfect mobility of capital between the capital-consuming sectors is assumed, and in the second situation, there is perfect mobility of land between the land-using sectors, keeping perfect mobility of capital assumption unchanged. The main conclusion is that the environmental effect of interest subsidization for modern agricultural sector is superior to other subsiding policies of factor prices.

Date: 2018
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DOI: 10.1080/16081625.2016.1246191

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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