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Agricultural Trade, Institutions, and Depletion of Natural Resources

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  • Sheetal Sekhri

    ()

  • Paul Landefeld

    ()

Abstract

Globalization can lead to either conservation or depletion of natural resources that are used in the production of traded goods. Rising prices may lead to better resource man- agement. Alternatively, stronger incentives to extract these resources may exacerbate their decline- especially in open access institutional frameworks. We examine the impact of agricultural trade promotion on the groundwater extraction in India using nationally representative data from 1996-2005. We nd evidence that trade promotion leads to de- pletion of groundwater reserves. Access to world markets does not result in emergence of institutions that would enable protection of the resource.

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File URL: http://www.virginia.edu/economics/RePEc/vir/virpap/papers/virpap405.pdf
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Bibliographic Info

Paper provided by University of Virginia, Department of Economics in its series Virginia Economics Online Papers with number 405.

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Length: 60 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:vir:virpap:405

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Web page: http://www.virginia.edu/economics/home.html

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Keywords: Groundwater Depletion; Agricultural Trade;

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  1. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2010. "Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 118(3), pages 536-598, 06.
  2. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, Elsevier, vol. 92(1), pages 1-45, September.
  3. Lopez, Ramon, 1998. "The Tragedy of the Commons in Cote d'Ivoire Agriculture: Empirical Evidence and Implications for Evaluating Trade Policies," World Bank Economic Review, World Bank Group, World Bank Group, vol. 12(1), pages 105-31, January.
  4. Sheetal Sekhri, 2013. "Missing Water: Agricultural Stress and Adaptation Strategies in Response to Groundwater Depletion in India," Virginia Economics Online Papers, University of Virginia, Department of Economics 406, University of Virginia, Department of Economics.
  5. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 30(3), pages 526-52, August.
  6. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, American Economic Association, vol. 100(3), pages 641-72, June.
  7. von Braun, Joachim & Ruel, Marie & Gulati, Ashok, 2008. "Accelerating progress toward reducing child malnutrition in India: A concept for action," Research briefs, International Food Policy Research Institute (IFPRI) 12, International Food Policy Research Institute (IFPRI).
  8. Lopez, Ramon, 1997. "Environmental externalities in traditional agriculture and the impact of trade liberalization: the case of Ghana," Journal of Development Economics, Elsevier, Elsevier, vol. 53(1), pages 17-39, June.
  9. Erwin Bulte & Edward Barbier, 2005. "Trade and Renewable Resources in a Second Best World: An Overview," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 30(4), pages 423-463, 04.
  10. Carolyn Fischer, 2010. "Does Trade Help or Hinder the Conservation of Natural Resources?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 103-121, Winter.
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