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Cost and trade impacts of environmental regulations: effluent control and the New Zealand dairy sector


  • Cassells, Sue M.
  • Meister, Anton D.


New Zealand legislation sets standards for water quality. Nitrogen leaching from dairy effluent compromises these standards, with the consequent move being toward land‐based effluent disposal. The cost of this to the dairy sector was estimated and a Computable General Equilibrium (CGE) model (GTAP) was used to investigate the impact of additional production costs on NZ’s dairy export trade. Two scenarios were analysed: first, NZ acts unilaterally in imposing water quality regulations, second, the other principal dairy exporters act in a similar fashion. Changes in trade patterns vary from insignificant to large, depending on the scenario analysed.

Suggested Citation

  • Cassells, Sue M. & Meister, Anton D., 2001. "Cost and trade impacts of environmental regulations: effluent control and the New Zealand dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), June.
  • Handle: RePEc:ags:aareaj:117392

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    References listed on IDEAS

    1. Dean, Judith M., 1992. "Trade and the environment : a survey of the literature," Policy Research Working Paper Series 966, The World Bank.
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    Cited by:

    1. Kenneth A. Baerenklau & Nermin Nergis & Kurt A. Schwabe, 2008. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural-Dynamic Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 219-241, June.
    2. Cassey, Andrew J. & Galinato, Suzette P. & Taylor, Justin L., 2012. "Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.
    3. Baerenklau, Kenneth A. & Nergis, Nermin & Schwabe, Kurt A., 2007. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural Model," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 10253, Western Agricultural Economics Association.
    4. Bezlepkina, Irina V. & Jongeneel, Roelof A. & Brouwer, Floor M. & Dillen, Koen & Meister, Anton D. & Winsten, Jonathan R. & de Roest, Kees & Demont, Matty, 2008. "Costs of compliance with EU regulations and competitiveness of the EU dairy sector," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44153, European Association of Agricultural Economists.


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