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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.
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    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.

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    File URL: http://purl.umn.edu/117392
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 45 (2001)
    Issue (Month): 2 (June)
    Pages:

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    Handle: RePEc:ags:aareaj:117392

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    Related research

    Keywords: Environmental Economics and Policy; Livestock Production/Industries;

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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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    Cited by:
    1. 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), July.
    2. 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.
    3. 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.

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