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Trade Liberalization and Agricultural Chemical Use: United States and Mexico

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  • Shon P. Williams
  • C. Richard Shumway

Abstract

To anticipate the likely effects of recent trade agreements with Mexico on the environment and food safety, this paper examines changes in agricultural chemical use. Econometric estimation and simulation suggest that the combined effects of the North American Free Trade Agreement (NAFTA), economic growth, research investment, and farm policy are expected to increase chemical usage substantially in the United States and undoubtedly lead to greater groundwater contamination. In Mexico, the expected effects are a substantial increase in fertilizer use but a decrease in pesticide use. Increases in private research investment are expected to increase the use of both types of chemicals, but increases in public research investment in the United States are not. Copyright 2000, Oxford University Press.

Suggested Citation

  • Shon P. Williams & C. Richard Shumway, 2000. "Trade Liberalization and Agricultural Chemical Use: United States and Mexico," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 183-199.
    • Handle: RePEc:oup:ajagec:v:82:y:2000:i:1:p:183-199
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00015
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    Citations

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    Cited by:

    1. Zhu, Wei & Qi, Lixia & Wang, Ruime, 2021. "Impact of Market Price Support Measures on Chemical Fertilizer Use in China," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(1), January.
    2. Johansson, Robert C. & Cooper, Joseph C. & Vasavada, Utpal, 2005. "Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), pages 1-12, April.
    3. Nie, Fei & Li, Jian & Bi, Xiang & Li, Gucheng, 2022. "Agricultural trade liberalization and domestic fertilizer use: Evidence from China-ASEAN free trade agreement," Ecological Economics, Elsevier, vol. 195(C).
    4. Alassane Drabo, 2011. "Agricultural primary commodity export and environmental degradation: what consequences for population's health?," CERDI Working papers halshs-00586034, HAL.
    5. Dasgupta, Susmita & Meisner, Craig & Wheeler, David & Jin, Yanhong, 2002. "Agricultural Trade, Development and Toxic Risk," World Development, Elsevier, vol. 30(8), pages 1401-1412, August.
    6. Taiji Furusawa & Keisaku Higashida & Jota Ishikawa, 2004. "Tariffs versus quotas in the presence of imperfect competition and cross-border externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 445-458, May.
    7. Johansson, Robert C. & Cooper, Joseph & Peters, Mark, 2006. "An agri-environmental assessment of trade liberalization," Ecological Economics, Elsevier, vol. 58(1), pages 37-48, June.
    8. Colyer, Dale, 2002. "Environmental Issues In The Ftaa," Conference Papers 19107, West Virginia University, Department of Agricultural Resource Economics.
    9. Lee L. Schulz & Ted C. Schroeder & Tian Xia, 2012. "Studying composite demand using scanner data: the case of ground beef in the US," Agricultural Economics, International Association of Agricultural Economists, vol. 43, pages 49-57, November.
    10. Zheng, Qiujie & Shumway, C. Richard, 2012. "Washington biofuel feedstock crop supply under output price and quantity uncertainty," Energy Policy, Elsevier, vol. 48(C), pages 515-525.
    11. Jose‐Maria Garcia‐Alvarez‐Coque & Victor Martinez‐Gomez & Miquel Villanueva, 2010. "Seasonal protection of F&V imports in the EU: impacts of the entry price system," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 205-218, March.
    12. Li, Wenying & Zhen, Chen, 2017. "A Reassessment of Product Aggregation Bias in Demand Analysis: An Application to the U.S. Meat Market," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258197, Agricultural and Applied Economics Association.
    13. Qiujie Zheng & C. Richard Shumway, 2008. "Washington Biofuel Feedstock Crop Supply Analysis," Working Papers 2008-24, School of Economic Sciences, Washington State University.
    14. Sckokai, Paolo, 2001. "The Common Agricultural Policy In Econometric Models," Working Papers 14800, National Institute of Agricultural Economics, Italy - INEA, Osservatorio Sulle Politiche Agricole dell'UE.
    15. Colyer, Dale, 2002. "Environmental Impacts Of Agricultural Trade Under Nafta," Conference Papers 19104, West Virginia University, Department of Agricultural Resource Economics.
    16. Nie, Fei & Li, Jian & Bi, Xiang, 2020. "Agricultural Trade Liberalization and Domestic Fertilizer Use: Evidence from a Natural Experiment in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304213, Agricultural and Applied Economics Association.
    17. Liu, Boying & Richard Shumway, C., 2016. "Substitution elasticities between GHG-polluting and nonpolluting inputs in agricultural production: A meta-regression," Energy Economics, Elsevier, vol. 54(C), pages 123-132.
    18. Reed, Albert J. & Levedahl, J. William & Clark, J. Stephen, 2003. "Commercial Disappearance and Composite Demand for Food with an Application to U.S. Meats," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(1), pages 1-18, April.

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