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Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization

  • Johansson, Robert C.
  • Cooper, Joseph C.
  • Vasavada, Utpal

This paper examines the elimination of all agricultural policy distortions in all trading countries and agricultural production decisions in the United States, as well as subsequent environmental quality in the presence and absence of nondegradation environmental standards. The results suggest that trade liberalization has the potential to increase domestic production and boost agricultural returns by as much as 8.5 percent. Consumer surplus would likely fall, and the discharge of nutrients, sediment, and pesticides would likely increase. However, environmental policies can limit these adverse environmental impacts and mute the potential decrease in consumer surplus, while leaving increased returns to agricultural production.

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File URL: http://purl.umn.edu/10195
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Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 34 (2005)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:arerjl:10195
Contact details of provider: Web page: http://www.narea.org/

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  1. Jeffrey A. Frankel & Andrew K. Rose, 2005. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 85-91, February.
  2. Abler, David G & Shortle, James S, 1992. "Environmental and Farm Commodity Policy Linkages in the U.S. and the EC," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(2), pages 197-217.
  3. Kym Anderson, 1992. "Agricultural Trade Liberalisation and the Environment: A Global Perspective," The World Economy, Wiley Blackwell, vol. 15(1), pages 153-172, 01.
  4. M.A. Cole & A.J. Rayner & J.M. Bates, 1998. "Trade Liberalisation and the Environment: The Case of the Uruguay Round," The World Economy, Wiley Blackwell, vol. 21(3), pages 337-347, 05.
  5. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 1998. "Is Free Trade Good for the Environment?," NBER Working Papers 6707, National Bureau of Economic Research, Inc.
  6. Kaplan, Jonathan D. & Johansson, Robert C., 2004. "A Carrot-and-Stick Approach to Environmental Improvement: Marrying Agri-Environmental Payments and Water Quality Regulations," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
  7. Jeff Hopkins & Robert Johansson, 2003. "Beyond Compliance: Sustainable Business Practices and the Bottom Line," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1126-1139.
  8. Westcott, Paul C. & Young, C. Edwin & Price, J. Michael, 2002. "The 2002 Farm Act: Provisions And Implications For Commodity Markets," Agricultural Information Bulletins 33745, United States Department of Agriculture, Economic Research Service.
  9. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
  10. Shon P. Williams & C. Richard Shumway, 2000. "Trade Liberalization and Agricultural Chemical Use: United States and Mexico," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 183-199.
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