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Cost and trade impacts of environmental regulations: effluent control and the New Zealand dairy sector

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  • Cassells, Sue M.
  • Meister, Anton D.

Abstract

New Zealand legislation sets standards for water quality. Nitrogen leaching from dairy effluent compromises these standards, with the consequent move being toward land‐based effluent disposal. The cost of this to the dairy sector was estimated and a Computable General Equilibrium (CGE) model (GTAP) was used to investigate the impact of additional production costs on NZ’s dairy export trade. Two scenarios were analysed: first, NZ acts unilaterally in imposing water quality regulations, second, the other principal dairy exporters act in a similar fashion. Changes in trade patterns vary from insignificant to large, depending on the scenario analysed.

Suggested Citation

  • Cassells, Sue M. & Meister, Anton D., 2001. "Cost and trade impacts of environmental regulations: effluent control and the New Zealand dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-18.
    • Handle: RePEc:ags:aareaj:117392
    DOI: 10.22004/ag.econ.117392
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    References listed on IDEAS

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    1. Dean, Judith M., 1992. "Trade and the environment : a survey of the literature," Policy Research Working Paper Series 966, The World Bank.
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    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

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    2. Jeff Bennett, 2005. "Australasian environmental economics: contributions, conflicts and ‘cop‐outs’," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 243-261, September.
    3. Kenneth A. Baerenklau & Nermin Nergis & Kurt A. Schwabe, 2008. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural‐Dynamic Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 219-241, June.
    4. Cassey, Andrew J. & Galinato, Suzette P. & Taylor, Justin L., 2012. "Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-22.
    5. Ghosh, Madanmohan & Rao, Someshwar, 2004. "Economic Impacts of a Possible Canada-U.S. Customs Union: Simulation Results From a Dynamic CGE Model," Conference papers 331192, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Baerenklau, Kenneth A. & Nergis, Nermin & Schwabe, Kurt A., 2007. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural Model," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 10253, Western Agricultural Economics Association.
    7. Junqian Xu & Yuanyuan Wu, 2018. "A Comparative Study of the Role of Australia and New Zealand in Sustainable Dairy Competition in the Chinese Market after the Dairy Safety Scandals," IJERPH, MDPI, vol. 15(12), pages 1-24, December.
    8. Bezlepkina, Irina V. & Jongeneel, Roelof A. & Brouwer, Floor M. & Dillen, Koen & Meister, Anton D. & Winsten, Jonathan R. & de Roest, Kees & Demont, Matty, 2008. "Costs of compliance with EU regulations and competitiveness of the EU dairy sector," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44153, European Association of Agricultural Economists.

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