Study On The Environmental And Economic Impacts Of The Modern Agricultural Development

The modern agriculture refers to the market-oriented agriculture which introduce advanced agricultural equipment and technology to achieve higher per unit yields compared to traditional agricultural methods.In recent years,many emerging economies such as India,China and Brazil have taken modern agriculture as an impetus and vigorously promoted it.However,along with the flourishing of modern agriculture,environmental pollution has become increasingly evident in developing countries.Thus,we must ask whether there is a particular mechanism that involves the two aforementioned issues.To date,no research has endeavored to combine the factors of modern agriculture and environmental pollution into a unifying framework.Through surveying a great number of the documents,the anther expounds the present state of the research on the modern agricultural development and environmental pollution,points out the necessity of studying the relationship of modern agricultural development and environmental pollution.Basis on the feature analysis on the modern agricultural development and environmental pollution and the characteristics of the above issues,this paper establishes a three-sector general equilibrium model to investigate the environmental and economic effects of policies intended to promote modern agriculture.In the model,two situations are considered:In the first situation,the perfect mobility of capital between the capital-consuming sectors is assumed,and in the second situation,there is perfect mobility of land between the land-using sectors,keeping perfect mobility of capital assumption unchanged.The main conclusion is that the environmental effect of interest subsidization for modern agricultural sector is superior to other subsiding policies of factor prices.At last,this paper examines the environmental and economic effects of the governmental policies for the modern agricultural development by numerical solutions.