Efficient green support

Dismantling of trade barriers under WTO regulation is expected to have a large impact on Norwegian agriculture. Apart from food and raw materials production, agriculture contributes many external benefits to society in the form of valued scenery, bio-dive rsity, flood control and health and nutrients qualities. WTO regulations will close down barriers to trade with products, but leave open a "Green box" provision for acceptable ways to compensate agriculture for enhanced environmental quality. This project will analyze the development of Norwegian agriculture if environmental services from agriculture were paid green premiums by consumers or by the government. Further, the project will evaluate whether a transformation of current subsidies to green premium s might succeed in conserving agricultural activity in the presence of increased food imports. The study will apply the JORDMOD model of the Norwegian agriculture developed at SNF, Bergen.