Policy Analysis by a New Framework to askthe Significance of Existence of Japanese Agriculture

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In this study, agriculture was assumed as the multifunctional industry to supply the two products, food and the environmentalbenefits, simultaneously. Policy analysis was carried out by a new framework to ask the significance of existence of Japanese agriculture, not to depend on the previous frames like free trade dominance theory and environment evaluation method. The new framework toevaluate the loss and gain from the joint production of two products in agriculture was developed. As a result of the empirical analysis, the fact that the social welfare canbe improved by subsidizing the production factors, which are not divided their contribution into the two products, was pointed out.