SUBSTITUTION AND THE RELATIVE SCALE OF PROTECTION: AN APPLICATION TO LIVESTOCK PRODUCTS IN THE UNITED KINGDOM

This paper presents, first of all, estimates of the rate of effective protection for particular livestock production activities in the United Kingdom over the period 1966–79. These estimates are used to construct a Relative Scale of Protection. Secondly, the sensitivity of the calculated rates and the Relative Scale to the incorporation of non-zero substitution elasticities in the formula for effective protection is examined. The results suggest that the Relative Scale is comparatively unaffected by substitution. It may be concluded that the rate of effective protection remains a useful concept for the empirical analysis of agricultural protection.