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Linkages between Agriculture, Trade and the Environment in the Context of the European Union Accession

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  • Toma, Luiza
  • Mathijs, Erik
  • Revoredo-Giha, Cesar

Abstract

This paper analyses the impact of trade on environment in Romania using a partial equilibrium model of bilateral trade in beef between Romania and the EU. We use a recursive dynamic model to analyse beef production and trade and adjust it as to include a component to evaluate the impact of liberalised trade due to Romania’s accession to the EU on groundwater and air quality. The environmental module of the model associates the pollution to the use of production inputs. We link the use of itrogen inputs (e.g., nitrogenous fertilisers, manure) to nitrogen loss through leaching/runoff into groundwater (nitrates) and greenhouse gases (emissions of nitrous oxide and methane). We compute the nitrogen loss through leaching/runoff into the groundwater based on the nitrogen balance and the greenhouse gases emissions as a function of applied nitrogen and the number of beef cattle. We consider two scenarios for the non-accession and accession case, produced a market outlook throughout the year 2011 based on assumptions regarding full trade liberalisation between the EU and Romania and income change in Romania and analysed the impact on environment. The increase in beef imports in the accession scenario at a higher rate than in the baseline scenario corresponds to a decrease in the groundwater and air pollution caused by cattle production.

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Bibliographic Info

Paper provided by Scottish Agricultural College, Land Economy Research Group in its series Working Papers with number 45991.

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Date of creation: Apr 2006
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Handle: RePEc:ags:saclwp:45991

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Keywords: agricultural trade; externalities; partial equilibrium model; Romania; Agricultural and Food Policy; Environmental Economics and Policy; International Relations/Trade;

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  1. van Tongeren, Frank & van Meijl, Hans & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics, Blackwell, vol. 26(2), pages 149-172, November.
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  5. Van der Mensbrugghe, Dominique & Roland-Holst, David & Dessus, Sebastien & Beghin, John C., 1998. "Interface Between Growth, Trade, Pollution and Natural Resource Use in Chile: Evidence from an Economywide Model, The," Staff General Research Papers 1481, Iowa State University, Department of Economics.
  6. Mitchell,Donald O. & Ingco,Merlinda D. & Duncan,Ronald C., 1997. "The World Food Outlook," Cambridge Books, Cambridge University Press, number 9780521589840, October.
  7. Kym Anderson, 2002. "Measuring Effects of Trade Policy Distortions: How far have we come?," Centre for International Economic Studies Working Papers 2002-09, University of Adelaide, Centre for International Economic Studies.
  8. Chad Barrett & Jacinto F. Fabiosa, 1998. "Policy Model for the Livestock and Poultry Sectors of Mexico, A," Center for Agricultural and Rural Development (CARD) Publications 98-tr39, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  9. Beghin, John & Dessus, Sebastien & Roland-Holst, David & Mensbrugghe, Dominique van der, 1997. "The trade and environment nexus in Mexican agriculture. A general equilibrium analysis," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 17(2-3), December.
  10. McCalla, Alex F. & Revoredo, Cesar L., 2001. "Prospects for global food security," 2020 vision briefs 71, International Food Policy Research Institute (IFPRI).
  11. McCalla, Alex F & Revoredo, Cesar L., 2001. "Prospects for global food security: a critical appraisal of past projections and predictions," 2020 vision discussion papers 35, International Food Policy Research Institute (IFPRI).
  12. John Beghin & Jean-Christophe Bureau & Sophie Drogue, 2004. "Calibration of incomplete demand systems in quantitative analysis," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 839-847.
  13. Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Input-Based Pollution Estimates for Environmental Assessment in Developing Countries," OECD Development Centre Working Papers 101, OECD Publishing.
  14. John C. Beghin & Jean-Christophe Bureau & Sophie Drogué, 2003. "Calibration of Incomplete Demand Systems in Quantitative Analysis, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp324, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  15. Mensbrugghe, Dominique van der & Roland-Holst, David & Dessus, Sebastien & Beghin, John, 1998. "The interface between growth, trade, pollution and natural resource use in Chile: evidence from an economywide model," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
  16. van der Mensbrugghe, Dominique & Roland-Holst, David & Dessus, Sebastien & Beghin, John, 1998. "The interface between growth, trade, pollution and natural resource use in Chile: evidence from an economywide model," Agricultural Economics, Blackwell, vol. 19(1-2), pages 87-97, September.
  17. Beghin, John & Dessus, Sebastien & Roland-Holst, David & van der Mensbrugghe, Dominique, 1997. "The trade and environment nexus in Mexican agriculture. A general equilibrium analysis," Agricultural Economics, Blackwell, vol. 17(2-3), pages 115-131, December.
  18. Chad Barrett & Jacinto F. Fabiosa, 1998. "Policy Model for the Livestock and Poultry Sectors of Mexico, A," Food and Agricultural Policy Research Institute (FAPRI) Publications 98-tr39, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
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