Agricultural Trade, Institutions, and Depletion of Natural Resources
AbstractGlobalization 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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Bibliographic InfoPaper provided by University of Virginia, Department of Economics in its series Virginia Economics Online Papers with number 405.
Length: 60 pages
Date of creation: Sep 2013
Date of revision:
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Web page: http://www.virginia.edu/economics/home.html
Groundwater Depletion; Agricultural Trade;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-10-05 (Agricultural Economics)
- NEP-ALL-2013-10-05 (All new papers)
- NEP-ENV-2013-10-05 (Environmental Economics)
- NEP-INT-2013-10-05 (International Trade)
- NEP-RES-2013-10-05 (Resource Economics)
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