Abstract

This article determines the optimal agricultural production level for the livestock and cultivation sectors in Korea considering the negative external effect on the environment. The mathematical programming models are used to maximize the Green GDP under relevant restrictions. The results of this study provides the basic data for nutrient management policies such as the total maximum nutrient loading system, fertilizer subsidy and the environmental tax by determining the optimal production of the livestock sector considering the cultivation area and the social environmental cost. They also provides information for fertilizer subsidy or tax policies for the cultivation sector by comparing the optimal levels to the actual inputs of fertilizer.

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