Research Reports
A Study on Policy Mix Relating to Agriculture and Rural Development for Green Growth
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AuthorKim, Yoonhyung
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Publication Date2011.11.30
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Original
The consolidation of policies regarding agriculture and rural villages for green growth should be interconnected with a high goal of green growth with policies on environment and energy, which has been individually promoted for each policy goal. In addition, it should be jointly pursued and based on cost effectiveness and efficiency resulting in appropriate policy mix among policy means. In order to reach such goals, complex interactions among various policy factors including policy goals and means and conflicts require integrating systems and policy-consolidating designs from the perspective of a network beyond individual policy areas and means.
The goal of this study is to propose tangible optimal policy mix to embody agriculture-related policies to make real progress in green growth, minimize inter-policy conflicts and overlaps, and maximize the synergy effect.
This research paper is composed of chapters as follows:
In the first chapter, I propose the necessity of this study, its purpose and method, as well as review preliminary studies. In the second chapter, I introduce policy mix theory. In the third chapter, I introduce foreign cases regarding policy mix and the inferred implications thereof to combine agriculture and rural villages-related policies and promote them for green growth. In the fourth chapter, I list the fundamental principles of policy mix on agriculture and rural villages and propose ways to relieve climatic change with policy mix cases. Finally, in the last chapter, I summarize this study and come to a conclusion. This study proposes detailed ways to combine policies regarding agriculture and rural villages for green growth as follows:
First, for South Korea, tax reforms are inevitable to achieving low carbon emissions and green growth as national strategies. The tax rate should reflect social costs such as environmental pollution, emission of greenhouse gases, and the ramifications of green development, as well as an appropriate mix of necessary regulations and supports to strengthen the function of taxation to achieve a low carbon effect. It is desirable to combine a carbon tax with emissions trading, as advanced countries have done, and necessary to incorporate a carbon tax in a wide range of areas for fields requiring a more active management. Acquisition and registration taxes and property taxes on environment-friendly buildings and real properties should be exempt and tax deduction rates should be drastically increased and lasting for long-term energy conservation, clean production facilities, environmental conservation equipment, and investment and R&D on new renewable energy sources. Moreover, it is necessary to gradually decrease tax-exemptions on pollution-emitting energy sources and environment-harming subsidies. First, the burden charge on the polluter’s principle should be reinforced and various burden charges should be reorganized. Second, most businesses pursing green growth in the existing agricultural sector were based on policies concerned mainly with supply, such as expansion of investment budgets and supplied facilities. Therefore, South Korea also needs a combination of demand stimulating policies that might be able to attract private investments through policy means such as public acquisition, standardization, and certification. In addition, government efforts should be forthcoming to pioneer a leading market in a promising business sector not yet formed. Third, even during the policy forming process, a policy-combining approach is needed. Today, each department of the Ministry of Agriculture, Forestry and Fisheries is promoting individual policies and has not yet attempted to combine policies .
In order to abstract a synergistic effect through policy mix, a comprehensive detailed agricultural goal should be proposed that integrates all of the goals of each department. Moreover, in evaluating for similarity or overlapping on business plans, one of the common evaluations indexed for finance business self-evaluation, a more cautious evaluation is necessary and the policy mix efforts of each department in the cooperative efforts factor should be more carefully evaluated during the process as one of the specific evaluations factors carried out by the office of the Prime Minister. A professional third-party evaluation on policy projects is recommended for objective evaluation and reviewing the effectiveness of policy-mix. Last, a gradual mix of policies is essential for efficiency and better acceptance of these policies. In order to do so, an evaluation of the potential for downsizing in the field of agriculture should be done first and a comprehensive list of the fields of agriculture, fisheries, and foundation for offsetting the carbon project in the field of agriculture should be completed. Furthermore, a small scale of policy-mix simulation (mini-mix) should be carried out to accumulate an experience of success and expand policy effectiveness through a comprehensive policy program for detailed problem solving.
Researchers: Yoon Hyung Kim
Research period: 2011.1 ~ 2011.12
E-mail address: yonhk2@krei.re.kr
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