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Trade Liberalization versus Climate Change Policy for Reducing Greenhouse Gas Emissions in Agriculture: Some Insights from Norway

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  • David Blandford
  • Ivar Gaasland
  • Erling Vårdal

Abstract

Using a mathematical programming model of Norwegian agriculture, we explore interconnections between trade liberalization and reductions in greenhouse gas (GHG) emissions. We show that the Doha Round proposals for a new agreement on agriculture through the World Trade Organization would not generate significant reductions in emissions. Further trade liberalization would reduce emissions by cutting agricultural production but would not change production methods. Imposing a carbon tax would lead both to a reduction in output and the extensification of production. In contrast, if farmers are allowed to claim a credit for carbon sequestration the effect is to intensify agricultural production.

Suggested Citation

  • David Blandford & Ivar Gaasland & Erling Vårdal, 2015. "Trade Liberalization versus Climate Change Policy for Reducing Greenhouse Gas Emissions in Agriculture: Some Insights from Norway," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 418-436.
    • Handle: RePEc:oup:apecpp:v:37:y:2015:i:3:p:418-436.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppu038
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    References listed on IDEAS

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    1. Orden,David & Blandford,David & Josling,Tim (ed.), 2011. "WTO Disciplines on Agricultural Support," Cambridge Books, Cambridge University Press, number 9781107005440.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
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    Cited by:

    1. Dungang Zang & Zhijia Hu & Yunqi Yang & Siyu He, 2022. "Research on the Relationship between Agricultural Carbon Emission Intensity, Agricultural Economic Development and Agricultural Trade in China," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    2. David Blandford & Katharine Hassapoyannes, 2018. "The role of agriculture in global GHG mitigation," OECD Food, Agriculture and Fisheries Papers 112, OECD Publishing.

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