The producer support estimate calculated by the OECD is widely misused as an indicator of distortions created by agricultural policies. In this paper we demonstrate rigorously that a change in the relative (percentage) PSE is not an accurate indicator of the implications of policy reform for...

A new round of trade negotiations under the World Trade Organization (WTO) was launched in 2001. One of the major aims of the Doha Development Round is to reduce agricultural protection and impose greater discipline on domestic agricultural subsidies, particularly those that are the most trade...

Without support, the levels of agricultural public goods will fall short of the demand in high cost countries like Norway, Finland and Iceland. However, as demonstrated in this paper using Norway as a case, the current support and agricultural activity is far out of proportions from a public...

This paper studies measurement of welfare e¤ects, transient and permanent, of stabilizing or deregulating prices in Cobweb-like settings. As in Cobweb-models, producers must commit inputs in face of uncertainty. Here, however, we consider producers who are concerned with adaptations of inputs...

Norwegian agriculture makes a disproportionate contribution to the country’s emissions of greenhouse gases (GHG) relative to its contribution to gross domestic product (GDP) – a picture that is repeated globally. Using a detailed economic model we examine what impacts an assumed 30 per cent...

We examine strategies for complying with trade liberalization and GHG emission cuts in agriculture using Norway as an empirical example. Trade liberalization implied by the Doha draft agreement on agriculture in the WTO will not have a major impact on the sector’s Trade missions, since the...