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The trade and environment nexus in Mexican agriculture. A general equilibrium analysis

Listed author(s):
  • Beghin, John C.
  • Dessus, Sebastien
  • Roland-Holst, David
  • Mensbrugghe, Dominique van der

This paper analyzes linkages between growth, trade and the environment in Mexican agriculture with an empirical economy-wide model. The investigation considers trade liberalization, environmental policy reform, and their coordination. The analysis decomposes the change in pollution emission induced by changes in the sectoral composition of production, effects of technology on emission intensity, and aggregate scale effects. Outward orientation alone induces a contraction of aggregate agricultural output, but promotes growth and pollution in some agricultural sectors. Overall, free trade does not induce wholesale specialization in dirty agricultural activities. Environmental taxes on pollution emitted in agricultural sectors have a moderate negative impact on agricultural output, except for the tax on water-borne toxic chemicals. More liberal trade combined with targeted effluent taxes can achieve significant environmental mitigation and efficiency gains, but with the implication of a contraction of most agricultural sectors.

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File URL: http://purl.umn.edu/174307
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics of Agricultural Economists.

Volume (Year): 17 (1997)
Issue (Month): 2-3 (December)
Pages:

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Handle: RePEc:ags:iaaeaj:174307
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  1. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1994. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers Archive 1589, Iowa State University, Department of Economics.
  2. Thomas Grennes & Barry Krissoff, 1993. "Agricultural Trade in a North American Free Trade Agreement," The World Economy, Wiley Blackwell, vol. 16(4), pages 483-502, July.
  3. Garcia-Barrio, Raul & Garcia-Barrios, Luis, 1990. "Environmental and technological degradation in peasant agriculture: A consequence of development in Mexico," World Development, Elsevier, vol. 18(11), pages 1569-1585, November.
  4. John Beghin & David Roland-Holts & Dominique van der Mensbrugghe, 1995. "Trade Liberalization and the Environment in the Pacific Basin: Coordinated Approaches to Mexican Trade and Environment Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 778-785.
  5. Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Input-Based Pollution Estimates for Environmental Assessment in Developing Countries," OECD Development Centre Working Papers 101, OECD Publishing.
  6. J. Andrès Espinosa & V. Kerry Smith, 1995. "Measuring the Environmental Consequences of Trade Policy: A Nonmarket CGE Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 772-777.
  7. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
  8. Heath, John Richard, 1992. "Evaluating the impact of Mexico's land reform on agricultural productivity," World Development, Elsevier, vol. 20(5), pages 695-711, May.
  9. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1997. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 442-455, May.
  10. Levy, Santiago & van Wijnbergen, Sweder, 1995. "Transition Problems in Economic Reform: Agriculture in the North American Free Trade Agreement," American Economic Review, American Economic Association, vol. 85(4), pages 738-754, September.
  11. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
  12. Harrison, Glenn W., 1993. "Environmentally sensitive industries and an emerging Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 4(1), pages 109-126.
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