Advanced Search
MyIDEAS: Login to save this paper or follow this series

Optimal adjustment of environmental policy following agricultural trade liberalization

Contents:

Author Info

  • Thilo W. Glebe

    ()
    (Environmental Economics and Agricultural Policy Group, Technical University of Munich)

  • Uwe Latacz-Lohmann

    ()
    (Department of Agricultural Economics, Christian-Albrechts University, Kiel)

Registered author(s):

    Abstract

    We use an extended partial equilibrium trade model to derive optimal environmental policy responses to tariff reduction requirements and assess the impact of such policies on the welfare of trading partners. We find that countries which attribute preferential political weights to farmers’ welfare have an incentive to implement environmental policies that deviate from the Pigouvian solution – even if production is not de facto linked to environmental externalities. We clarify the conditions under which trading partners do not gain from unilateral trade liberalization if trade concessions are accompanied by strategic environmental policy changes. We postulate a role for the WTO in overseeing the process of formulating domestic policies to further the multifunctional role of agriculture.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ap.wzw.tum.de/fileadmin/pdfs/Discussion_paper_08_2005.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Technische Universität München, Environmental Economics and Agricultural Policy Group in its series Discussion Papers with number 082005.

    as in new window
    Length: 23 pages
    Date of creation: Aug 2005
    Date of revision:
    Handle: RePEc:tuu:papers:082005

    Contact details of provider:
    Postal: Alte Akademie 14, D-85350 München
    Phone: +49(0)8161 71-3406
    Fax: +49(0)8161 71-3408
    Web page: http://www.wzw.tum.de/ap/
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Runge, C. Ford, 1999. "Beyond The Green Box: A Conceptual Framework For Agricultural Trade And The Environment," Working Papers 14417, University of Minnesota, Center for International Food and Agricultural Policy.
    2. Rhode, Paul & Stegeman, Mark, 2001. "Non-Nash equilibria of Darwinian dynamics with applications to duopoly," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 415-453, March.
    3. Vandendorpe, Adolf L., 1972. "Optimal tax structures in a model with traded and non-traded goods," Journal of International Economics, Elsevier, vol. 2(3), pages 235-256, August.
    4. Gonzalez-Maestre, Miguel & Lopez-Cunat, Javier, 2001. "Delegation and mergers in oligopoly," International Journal of Industrial Organization, Elsevier, vol. 19(8), pages 1263-1279, September.
    5. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, vol. 5(1), pages 15-29, February.
    6. Burguet, Roberto & Sempere, Jaume, 2003. "Trade liberalization, environmental policy, and welfare," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 25-37, July.
    7. Bruce Gardner, 1981. "Efficient Redistribution in Agricultural Commodity Markets," University of Chicago - George G. Stigler Center for Study of Economy and State 20, Chicago - Center for Study of Economy and State.
    8. Neal H. Hooker & Julie A. Caswell, 1999. "A Framework for Evaluating Non-Tariff Barriers to Trade Related to Sanitary and Phytosanitary Regulation," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 234-246.
    9. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September.
    10. Greaker, Mads, 2003. "Strategic environmental policy; eco-dumping or a green strategy?," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 692-707, May.
    11. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    12. Philip C. Abbott & Panu K. S. Kallio, 1996. "Implications of Game Theory for International Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 738-744.
    13. David Blandford & Richard N. Boisvert & Linda Fulponi, 2003. "Nontrade Concerns: Reconciling Domestic Policy Objectives with Freer Trade in Agricultural Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 668-673.
    14. Jeffrey M. Peterson & Richard N. Boisvert & Harry de Gorter, 2002. "Environmental policies for a multifunctional agricultural sector in open economies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 423-443, December.
    15. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
    16. Tanaka, Yasuhito, 2001. "Evolution to equilibrium in an asymmetric oligopoly with differentiated goods," International Journal of Industrial Organization, Elsevier, vol. 19(9), pages 1423-1440, November.
    17. Markusen James R. & Morey Edward R. & Olewiler Nancy D., 1993. "Environmental Policy when Market Structure and Plant Locations Are Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 69-86, January.
    18. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-40, Supplemen.
    19. Swinbank, Alan, 1999. "CAP Reform and the WTO: Compatibility and Developments," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 389-407, August.
    20. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
    21. Ulph, Alistair, 1996. "Environmental Policy and International Trade when Governments and Producers Act Strategically," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 265-281, May.
    22. Ian Hodge, 2000. "Agri-environmental Pelationships and the Choice of Policy Mechanism," The World Economy, Wiley Blackwell, vol. 23(2), pages 257-273, 02.
    23. Edwards, Geoff & Fraser, Iain, 2001. "Reconsidering agri-environmental policy permitted by the Uruguay round agreement," Ecological Economics, Elsevier, vol. 37(2), pages 313-326, May.
    24. Rath, Kali P. & Zhao, Gongyun, 2001. "Two stage equilibrium and product choice with elastic demand," International Journal of Industrial Organization, Elsevier, vol. 19(9), pages 1441-1455, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:tuu:papers:082005. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roswitha Weinbrunn).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.