Do positive agricultural externalities provide a justification against trade liberalisation?
AbstractThis paper analyses the welfare effects of agricultural trade liberalisation when taking into account the positive environmental externalities of European farming. We show that free trade is suboptimal, if no efficient environmental policy addressing the provision of multifunctional amenities is implemented. However, tariff reductions in a net-importing country will increase the incentive for introducing an environmental policy, though this policy will be strategically distorted. Despite its strategic character, introducing an optimal environmental policy, when simultaneously abolishing a tariff policy in an importing country, will unambiguously enhance global welfare.
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Bibliographic InfoPaper provided by Technische Universität München, Environmental Economics and Agricultural Policy Group in its series Discussion Papers with number 062005.
Length: 14 pages
Date of creation: Jun 2005
Date of revision:
Publication status: Published in Cahiers d'Economie et Sociologie Rurales. No. 82-83, 57-72. (title: Agricultural multifunctionality and trade liberalisation; revised version)
Agricultural trade; agricultural multifunctionality; strategic environmental policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-02-17 (Agricultural Economics)
- NEP-ALL-2007-02-17 (All new papers)
- NEP-ENV-2007-02-17 (Environmental Economics)
- NEP-INT-2007-02-17 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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