Economic And Environmental Effects Of Agriculture Subsidy Financed On Industrial Pollution Tax In The Presence Of Agricultural Pollution

The strategic transformation from agriculture feeding industry to industry feeding agriculture is the law of world economic development.However,both agriculture feeding industry and industry feeding agriculture involve environmental problems,which are often ignored by existing research.Because of the high dependence of the production process on the ecological environment,agriculture,as a provider of ecological service value,also becomes a victim of environmental pollution.According to the principle of ecological compensation and the theory of public goods,industry needs to compensate agriculture for the loss of opportunity cost of development caused by environmental pollution and benefit from the value of agro-ecological services.At present,China is in the critical stage of industry feeding agriculture,and the contradiction between economic development and environmental pollution,especially agricultural non-point source pollution,is increasingly prominent.Based on this,this paper studies the industry feeding agriculture from the perspective of ecological environment,and proposes the form of industry feeding agriculture that subsidizing agricultural non-polluting factors with industrial pollution tax from the perspective of ecological compensation.Using the Harris-Todaro model as the theoretical analysis framework,the economic and environmental effects of agriculture subsidy financed on industrial pollution tax were studied,and the interaction between industry feeding agriculture,environmental pollution and urban and rural welfare level was clarified.In theoretical analysis,this article set three forms of subsidies for agricultural sector wage,capital interest and agricultural product price,and incorporate agricultural non-point source pollution into Copeland & Taylor environmental functions to distinguish the different ways that industrial pollution and agricultural pollution affect the economy and environment.Based on a general equilibrium model of two sectors including industry and agriculture,this article use comparative static analysis to study the impact of industrial pollution tax subsidizing agriculture on production factors,environment,welfare and other endogenous variables from the long-term and short-term perspectives.In empirical analysis,the Chinese macroeconomic data are used to calibrate the model parameters and perform numerical simulation,analyze and discuss the numerical characteristics of the theoretical model to verify the validity and robustness of the theoretical model.The main conclusions of this article are as follows:In the short run,industrial pollution tax subsidizing agriculture promote labor transfer to agriculture,and has the effect of improving environmental quality,improving rural welfare levels,and reducing urban welfare levels;In the long run,industrial pollution tax subsidizing agriculture promote the transfer of capital and labor to industry,and resulting in the deterioration of environmental quality.Rural welfare level show an "inverted U" shape with the increase in the subsidy rate,and urban welfare levels showed a "U" shape with the increase in the subsidy rate.In terms of comparing the economic and environmental effects of the three forms of agricultural subsidies,the environmental and rural welfare effects of short-term agricultural product price subsidy are better,while the environmental effects of long-term agricultural product price subsidy are worse and the rural welfare effect is better.In conclusion,the research in this paper shows that the impact of industry feeding agriculture on economy and environment is more complicated under the background of agricultural non-point source pollution.The long-run and short-run results are not the same,prompting policy makers to take into account the factors of feeding back and improving the rural environment when formulating industrial feeding agricultural policies,and commit to the common improvement of rural income levels and the quality of the ecological environment.