Subsidies On The Agricultural Sector And On The Agricultural Producer Service Sector

On the one hand,the Rural Vitalization Strategy concerns the development of agriculture product service and the environmental protection at the same time,which have closely related to each other.On the other hand,researches concern the industrial pollution in developing countries,so that the mechanism of agricultural pollution seems unclear.As a result,I decided to find out the environmental impact of developing agriculture product service industry and thus,to come up with the developing path which generates the least pollution.I establish a general equilibrium framework including two sectors,i.e.the agricultural producer service sector and the agricultural sector,and the subsidy on each of the sectors are completely separated in terms of the receivers' jobs.I consider four types of subsidies in this model,and figure out the economic impact and the environmental impact for each of them.Then I compare their environmental impact through grouping them and subtracting them with each other.Then I use the caliberation to test the propositions I derive from the theoretical model,and the results are robust.Conclusions are following.1.Each of the four subsidies will increase the use of pollutant factor and thus,increase the pollution-generated consumption.2.For both sectors,wage subsidy will be more environmental-friendly if the labor cost of “other consumption” is lower than the cost of capital.3.Subsidies on the agricultural sector will be more environmental-friendly than that on the agricultural producer service sector,and the interest subsidy on agriculture sector generates the least pollution.4.For each of these subsidy policies,the advancement of agricultural technology will alleviate agricultural pollution.The government is welcomed to use these conclusions for reference when designing economic policies.I suggest that the environmental impact should be taken into account in economic decisions.Also,more advanced agricultural techniques should be developed,and substitutions of the pollutant factor should be explored by researchers and scientists.