Research On Agricultural Direct Subsidy Policy Based On Externality Theory

Since the implementation of the direct subsidy policy in China in 2004,food production has achieved twelve consecutive increases,and the per capita income of farmers has also been improved rapidly.The direct agricultural subsidy policy can be said to meet the policy objectives of ensuring food security and farmers' income growth,but we can't ignore the external impact of the direct subsidy policy of agriculture,especially the negative externalities that it brings to the ecological environment.This paper is based on the direct subsidy of grain,the direct subsidy of grain supply,the subsidy of seed resources and the subsidy of agricultural equipment purchase and then points out the problems existing in the direct subsidy policy of agriculture,such as the low subsidy standard,the great difference of subsidy standard,and the subsidy nonstandard rules,the implementation of high costs,poor supervision and so on.Therefore,the gray relational analysis method is used to evaluate the performance of direct subsidy policy.The study found that the direct subsidy policy of agriculture did improve the grain yield and farmers' income.And the effect of the four direct subsidy policies show in turn: direct subsidy of grain,subsidy of grain,comprehensive direct subsidy of agricultural resources and subsidy for purchase of agricultural machinery.In terms of raising the income of farmers,the effect of size:direct subsidies for grain,seed subsidies,agricultural direct subsidies,agricultural machinery purchase subsidies.The article argues that direct agricultural subsidies will have external effects,not only in the positive externalities,but also produce negative externalities.It is mainly because of agricultural direct subsidy policy in the implementation process has been distorted,subsidies bring about an incentive to farmers to excessive use of pesticides,fertilizers and agricultural plastic film.Which has caused a series of problems such as water pollution,air pollution,soil erosion,biodiversity reduction and so on to destroy the ecological environment.This paper makes a quantitative analysis of the externality of agricultural direct subsidy,and uses the gray relational analysis method to use the indicators of pesticide,agricultural fertilizer and agricultural plastic film to study the degree of the direct subsidy of agriculture externality,and obtained the gray relational degree of the direct subsidy of agricultural usage is 0.608,0.68 and 0.606.And also calculated the four direct subsidies to agriculture on their impact,the results show that no matter what kind of indicator,direct subsidies to produce externality is the largest one.Finally,according to the internalization method of externality theory,this paper discusses the possibility of eliminating the externalities of agricultural direct subsidy policy from the angle of administrative control,Pigou tax and Coase theorem.On this basis,the author puts forward some suggestions,such as advocating ecological subsidy,establishing new concept of green growth,reforming the agricultural directly subsidizing system,and supporting the growth of bio-pesticide and green organic fertilizer enterprises.