The General Equilibrium Impacts of Reducing Agricultural Nutrient Emissions in Korea

Ohsang Kwon

Journal of Rural Development/Nongchon-Gyeongje, 2021, vol. 44, issue 3

Abstract: This study analyzes the general equilibrium impacts of regulating agricultural phosphorus emissions in Korea. A static computable general equilibrium model is constructed for the analysis. The study introduces a hypothetical phosphorus emission trading scheme that aims to reduce 10 percent of the total emission from the livestock sector in 2015. Scenario 1 of the analysis assumes that both livestock and fertilizer industries are subject to the regulation, while Scenario 2 assumes that only the livestock industry is subject to the regulation. The government’s emission permit revenue is recycled so that farm households maintain their pre-regulation welfare level. The welfare cost of non-farm households is about 0.4 percent of their total expenditure under both scenarios. The result shows that the marginal abatement cost of Scenario 2 is about 50 percent higher than that of Scenario 1. Although those two policy scenarios result in very similar simulated overall welfare impacts, they have substantial differences in industry-specific effects on domestic production, consumer price, and import/export.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/330823/files/RE44-3-02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:330823

DOI: 10.22004/ag.econ.330823

Access Statistics for this article

More articles in Journal of Rural Development/Nongchon-Gyeongje from Korea Rural Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().