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Pesticide use and the effect of trade liberalization on environment for rice production

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  • Chung-Huang Huang
  • Ping-Yi Huang
  • Yuan-Yun Ling
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    Abstract

    Purpose – In light of the global concern about the impact of trade liberalization on environment, this paper intends to measure, theoretically as well as empirically, the impact of freer rice trade on environmental quality in terms of chemical intensity, measured by a decreasing scale indicator. Design/methodology/approach – A dynamic land allocation model is designed that incorporates rational expectations on rice price and soil degradation due to long-term cultivation on the same piece of land. Both demands for land and pesticides are derived and empirically estimated using time-series data in Taiwan. Findings – The results reveal that chemical intensity may increase with freer trade. The effect of freer trade on chemical intensity was less significant in earlier days such as the 1980s than in recent years. The basic model explains, to some extent, why some country representative conveyed their concerns in the Committee of Trade and Environment under WTO about the environmental degradation due to freer trade in agriculture. It also implies that more investment on environmental protection is warranted in the course of trade liberalization. Research limitations/implications – Given the dramatic inflation of energy prices, more elaboration on the price specification with respect to pesticides may be warranted for future researches. Originality/value – The paper develops a rational expectations model to measure the impact of rice trade liberalization on environmental quality.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 1 (2009)
    Issue (Month): 1 (February)
    Pages: 58-72

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    Handle: RePEc:eme:caerpp:v:1:y:2009:i:1:p:58-72

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    Related research

    Keywords: Agriculture; China; Consumption; Income; Migrant workers; Rural economies;

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    Cited by:
    1. Yanrui Wu, 2011. "Chemical fertilizer use efficiency and its determinants in China's farming sector: Implications for environmental protection," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(2), pages 117-130, May.
    2. Xinkai Zhu & Xiaoou Liu, 2011. "Dynamics of retail pricing: a case study of fluid milk," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(2), pages 171-190, May.
    3. Linhai Wu & Bo Hou, 2012. "China's farmer perception of pesticide residues and the impact factors: The case of Jiangsu Province," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(1), pages 84-104, February.

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