Agricultural producer service subsidies and agricultural pollution: An approach based on endogenous agricultural pollution

Xiaochun Li and Huanan Fu

Review of Development Economics, 2023, vol. 27, issue 2, 1177-1198

Abstract: Agricultural producer service is an indispensable link in promoting agricultural modernization in developing countries, while agricultural pollution has become the largest source of pollution in many developing countries. Given that agricultural pollution is different from industrial pollution due to its endogenous characteristics, we linked agricultural pollution with the human capital level of labor and propose an endogenous model that reflects the agricultural pollution path, which is different from the traditional path. We studied the effects of government price subsidy, interest subsidy, and wage subsidy to agricultural producer service on agricultural pollution and other economic indicators by constructing a three‐sector general equilibrium model including agricultural producer service. We found that the rise of price subsidy for the agricultural producer service and the wage subsidy of the agricultural producer service sector would increase the output of agricultural sector and reduce the output of agricultural producer service under certain conditions, but aggravate agricultural pollution; at the same time, the rise of interest subsidy of the agricultural producer service sector would decrease the output of the agricultural sector, enhance the output of agricultural producer service conditionally, and decrease agricultural pollution. Preconditions of the three subsidies to improve national welfare have been obtained.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/rode.12983

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:bla:rdevec:v:27:y:2023:i:2:p:1177-1198

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().