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Trade liberalization and the environment: The case of agriculture in South Africa

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  • Hassan, Rashid M.

Abstract

An input-output framework with environmental accounting module was used to investigate the implications of liberalising agricultural trade on the environment in South Africa. The results showed that trade liberalisation in the case of agricultural commodities will lead to environmental improvement. The empirical multi-sector model results were consistent with theoretical results obtained from comparative-statics partial-equilibrium trade models for the case of goods the production of which is associated with environmental externality and their domestic prices above world prices. The study suggested a general equilibrium approach, allowing for more flexible structure of substitution in demand and supply, output composition response, income effects and improved measures of environmental impact parameters for proper assessment of welfare changes associated with environmental externalities.

Suggested Citation

  • Hassan, Rashid M., 1997. "Trade liberalization and the environment: The case of agriculture in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-27, December.
    • Handle: RePEc:ags:agreko:54435
    DOI: 10.22004/ag.econ.54435
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    Cited by:

    1. Juana, James S. & Mabugu, Ramos E., 2005. "Assessment of smallholder's agriculture's contribution to the economy of Zimbabwe: A social accounting matrix multiplier analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-19, September.
    2. McDonald, Scott & Punt, Cecilia, 2005. "General equilibrium modelling in South Africa: What the future holds," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), pages 1-39, March.
    3. Jámbor, Attila & Balogh, Jeremiás Máté, 2020. "Az agrárkereskedelem környezeti hatásainak vizsgálata szisztematikus szakirodalmi áttekintés segítségével [Investigating environmental effects of agricultural trade through a systematic review of t," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 930-949.
    4. Jeremiás Máté Balogh & Attila Jámbor, 2020. "The Environmental Impacts of Agricultural Trade: A Systematic Literature Review," Sustainability, MDPI, vol. 12(3), pages 1-16, February.

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