Multifunctionality in agriculture: externalities and non-traded goods Online publication date: Fri, 22-Jul-2005
by Andrew Schmitz, Charles B. Moss
International Journal of Agricultural Resources, Governance and Ecology (IJARGE), Vol. 4, No. 3/4, 2005
Abstract: The multifunctionality nature of agriculture has been used to justify continuing protection for the agricultural sector. The farm sector produces a variety of outputs, some of which are marketable (or tradable) and others not. Protectionism, under the guise of multifunctionality, is then justified to support the non-marketed dimensions of the agricultural sector. We examine the impacts of trade policies on the loss or gain of economic welfare caused by the divergence between social and private marginal cost. Next, we analyse how social and marginal costs are affected by the assignment of property rights and the implications of non-traded goods. Critical in each of these formulations is the magnitude and direction of the divergence between social and private marginal cost. In the USA, agriculture faces increasing regulations, recognising that agriculture produces negative and positive externalities. In this context, we examine the policy implications of multifunctionality.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Agricultural Resources, Governance and Ecology (IJARGE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook