Effects of agricultural market policy on crop production in China |
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| Authors: | W C Lu |
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| Institution: | 1. School of Agriculture and Biology, Shanghai Jiao Tong University, Shanghai 200240, China;2. Eco-environmental Protection Institute of Shanghai Academy of Agricultural Science, Shanghai 201403, China;3. Jiangsu Key Laboratory of Agricultural Meteorology, School of Applied Meteorology, Nanjing University of Information Science and Technology, Nanjing 210044, China;4. Institute for the Study of Earth, Ocean and Space, University of New Hampshire, Durham, NH 03824, USA;1. School of Atmospheric Sciences, Center for Monsoon and Environment Research, Sun Yat-sen University, Guangzhou 510275, China;2. State Key Laboratory of Earth Surface Processes and Resource Ecology, Beijing Normal University, Beijing 100038, China;3. Agro-Technical Station, Shandong 250100, China;1. European Commission, Joint Research Centre (JRC), Ispra, Italy;2. Global Footprint Network, 18 Avenue Louis-Casai, 1219 Geneva, Switzerland;3. Senckenberg Biodiversity and Climate Research Centre (SBiK-F), Senckenberganlage 25, 60325 Frankfurt am Main, Germany;4. Vienna University of Economics and Business (WU), Institute for Ecological Economics, Welthandelsplatz 1, 1020 Vienna, Austria;5. Food and Agriculture Organization of the United Nations, Animal Production and Health Division, Viale delle Terme di Caracalla, 00153 Rome, Italy;6. Animal Production Systems group, Wageningen University & Research, PO Box 338, 6700 AH Wageningen, the Netherlands;7. Teagasc – Crops, Environment and Land Use Programme, Johnstown Castle, Wexford, Ireland;8. European Sustainable Phosphorus Platform (ESSP), Avenue du Dirigeable 8, 1170 Brussels, Belgium;9. Institute for Sustainable Resources, Bartlett School of Environment, Energy and Resources, University College London, WC1H 0NN London, UK;10. KTH – Royal Institute of Technology, Department of Sustainable Development, Environmental Science and Engineering, Stockholm SE-100 44, Sweden;11. Ecodynamics Group – Department of Earth, Environmental and Physical Sciences, University of Siena, Pian dei Mantellini 44, 53100 Siena, Italy;12. School of Public Affairs, Zhejiang University, 310058 Hangzhou, China;13. Department of Natural Resources, The Environment and The Sustainability Institute, University of New Hampshire, Durham, NH, USA;14. University of Free State, 205 Nelson Mandela Dr, Park West, Bloemfontein 9301, South Africa;15. Twente Water Centre, University of Twente, P.O. Box 217, Enschede, Netherlands;p. Institute of Water Policy, Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore;q. R2Water Research and Consultancy, Amsterdam, Netherlands |
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| Abstract: | This paper investigates the effects of Chinese market policy on crop production in the reform process. After a brief review of the policy changes due to the reform, the theoretical significance of Chinese market policies for crop production is demonstrated diagrammatically. It is shown that under the current market system the production of main crops is significantly influenced by both market and quota prices. While relatively high quota reduces the influence of market prices on production, relative price changes between competing crops will lead to shifting farmers’ cultivation preferences if inputs are constant. Empirical analysis, based on cross-section data for the period 1985–1997 from the province of Zhejiang, confirms these hypotheses. The effects of policy variables, however, prove to be crop-specific. If the potential of crop production in China is to be better used, an even more market-oriented agricultural policy is required. |
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| Keywords: | China Market policy Crop production |
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