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Trade Policy And Environmental Quality: The Case Of Export Subsidies

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  • Leetmaa, Susan E.
  • Krissoff, Barry
  • Hartmann, Monika

Abstract

The United States and the European Union both employ export subsidies to stimulate wheat trade and to increase their competitiveness in world markets. The environmental consequences of these policies are being questioned. We simulate reducing or removing export subsidies for wheat from the United States and the EU using a multicountry partial equilibrium model, and we analyze the impact of export subsidy policy reform on nitrogen fertilizer and other chemical use. Our findings indicate that the U.S. EEP program cannot be blamed for environmental degradation in terms of nitrate leaching, while EU wheat subsides make only a small contribution to nitrate pollution.

Suggested Citation

  • Leetmaa, Susan E. & Krissoff, Barry & Hartmann, Monika, 1996. "Trade Policy And Environmental Quality: The Case Of Export Subsidies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-9, October.
    • Handle: RePEc:ags:arerjl:31403
    DOI: 10.22004/ag.econ.31403
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    References listed on IDEAS

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    1. Haley, Stephen L. & Leetmaa, Susan E. & Webb, Alan J., 1993. "Wheat Cleaning and its Effect on U.S. Wheat Exports," Working Papers 51108, International Agricultural Trade Research Consortium.
    2. H. G. Brooks & S. Devadoss & W. H. Meyers, 1990. "The Impact of the U.S. Wheat Export Enhancement Program on the World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(2), pages 253-277, July.
    3. Denbaly, Mark & Vroomen, Harry, 1991. "Elasticities of Fertilizer Demands for Corn in the Short and the Long Run: A Cointegrated and Error-Correcting System," Staff Reports 278575, United States Department of Agriculture, Economic Research Service.
    4. Boyle, G E & O'Neill, D, 1990. "The Generation of Output Supply and Input Demand Elasticities for a Johansen-Type Model of the Irish Agricultural Sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(4), pages 387-405.
    5. Krissoff, Barry & Ballenger, Nicole & Dunmore, John C. & Gray, Denice, 1996. "Exploring Linkages Among Agriculture, Trade, and the Environment: Issues for the Next Century," Agricultural Economic Reports 33961, United States Department of Agriculture, Economic Research Service.
    6. Ribaudo, Marc O. & Shoemaker, Robbin A., 1995. "The Effect of Feedgrain Program Participation on Chemical Use," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 211-220, October.
    7. Seitzinger, Ann Hillberg & Paarlberg, Philip L., 1989. "The Export Enhancement Program: How Has It Affected Wheat Exports," Agricultural Information Bulletins 309513, United States Department of Agriculture, Economic Research Service.
    8. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    9. Ball, V. Eldon, 1989. "Estimating supply response of multiproduct farms," Technical Bulletins 312295, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Anania, Giovanni, 2001. "Modeling Agricultural Trade Liberalization. A Review," 2001 Annual meeting, August 5-8, Chicago, IL 20758, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Cemal Atici, 2008. "Agricultural Policies and Environmental Interaction in OECD Contries," ICER Working Papers 26-2008, ICER - International Centre for Economic Research.

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