An Empirical Analysis on Payment for Environmental Service– A Case Study on Organic Farming

• Main Authors: Cheng-Yuan Chien, 簡崝芫
• Other Authors: 廖述誼
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/u96uyz

碩士 === 國立中興大學 === 應用經濟學系所 === 101 === Traditional farming has been practiced for years. With the development of genetically modified agricultural production techniques, these two modes of production agriculture has become mainstream. But, both Traditional farming and genetically modified agricultural are cause much pollution to environmental. In order to reduce it, promotion of organic farming is imperative. However, organic cultivation land area is growing rather slow as we compare the growth rate of organic farming land area with the growth rate of consumer market, showing that there’s much room for development. Therefore, the government ought to encourage circular agriculture, biodynamic agriculture, natural farming and other low input but environmentally friendly farming through direct payments. By doing so we could reduce the pollution, stimulate biological diversity and ensure land capacity and sustainability. In order to encourage organic farming, this study proposes an adequate amount of subsidy for reference. This study collects environmentally services subsidy policy at home and abroad and select South Korea as a model for her similarity to Taiwan. South Korea has implemented the environmentally services policy for years with subsidy lying between NT$12,090 and NT$18,420 per hectares. This study further compare rice production cost in Taiwan with that in Korea and apply relative ratio method to simulate the optimum subsidy for Taiwan. This study estimates that when subsidy reaches NT$72,621 per hectares, organic rice acreage will reach 3,965 hectares.