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Environmental Effects Of Agricultural Trade Liberalization And Domestic Agricultural Policy Reforms

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Jussi LANKOSKI

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Abstract

The paper reviews existing studies on linkages between agricultural policies, trade liberalization and the environment. Since the price and production changes induced by the Uruguay Round Agreement on Agriculture seem likely to be quite modest for most countries, this partial trade liberalization may not cause major changes, positive or negative, in the environmental impacts of agricultural production. Instead, the environmental impacts of domestic agricultural policy reforms will probably be more significant than impacts induced by the Uruguay Round Agreement on Agriculture. This is largely due to the fact that agricultural trade liberalization, partial or complete, can alleviate some policy failures which have adverse environmental impacts, but does not correct environmental market failures. By contrast, domestic agricultural policy reforms, while alleviating policy failures, could also tackle environmental market failures through, for example, agroenvironmental programmes.

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Paper provided by United Nations Conference on Trade and Development in its series UNCTAD Discussion Papers with number 126.

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Date of creation: 1997
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Handle: RePEc:unc:dispap:126

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  1. Just, Richard E & Antle, John M, 1990. "Interactions between Agricultural and Environmental Policies: A Conceptual Framework," American Economic Review, American Economic Association, vol. 80(2), pages 197-202, May. [Downloadable!] (restricted)
  2. Clinton R. Shiells & Uwe Eiteljörge, 1995. "The Uruguay Round and Net Food Importers," IMF Working Papers 95/143, International Monetary Fund.
  3. Repetto, Robert, 1987. "Economic Incentives for Sustainable Production," The Annals of Regional Science, Springer, vol. 21(3), pages 44-59, November.
  4. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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  5. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September. [Downloadable!] (restricted)
  6. Gupta, Sanjeev & Miranda, Kenneth & Parry, Ian, 1995. "Public expenditure policy and the environment: A review and synthesis," World Development, Elsevier, vol. 23(3), pages 515-528, March. [Downloadable!] (restricted)
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  7. Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1997. "Quantifying the Uruguay Round," Economic Journal, Royal Economic Society, vol. 107(444), pages 1405-30, September. [Downloadable!] (restricted)
  8. Tobey, James A., 1991. "The effects of environmental policy towards agriculture on trade some considerations," Food Policy, Elsevier, vol. 16(2), pages 90-94, April. [Downloadable!] (restricted)
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