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

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  • John Beghin
  • Sebastien Dessus
  • David Roland‐Hoist
  • Dominique van der Mensbrugghe

Abstract

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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  • John Beghin & Sebastien Dessus & David Roland‐Hoist & Dominique van der Mensbrugghe, 1997. "The trade and environment nexus in Mexican agriculture. A general equilibrium analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 115-131, December.
  • Handle: RePEc:bla:agecon:v:17:y:1997:i:2-3:p:115-131
    DOI: 10.1111/j.1574-0862.1997.tb00468.x
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    Cited by:

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    2. Toma, Luiza & Mathijs, Erik & Revoredo-Giha, Cesar, 2006. "Linkages between Agriculture, Trade and the Environment in the Context of the European Union Accession," Working Papers 45991, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Grames, Johanna & Zoboli, Ottavia & Laner, David & Rechberger, Helmut & Zessner, Matthias & Sánchez-Romero, Miguel & Prskawetz, Alexia, 2019. "Understanding feedbacks between economic decisions and the phosphorus resource cycle: A general equilibrium model including material flows," Resources Policy, Elsevier, vol. 61(C), pages 311-347.
    4. Ervin, David E. & Fox, Glenn, 1998. "Environmental Policy Considerations In The Grain-Livestock Subsectors In Canada, Mexico And The United States," Proceedings of the 4th Agricultural and Food Policy Systems Information Workshop 1998: Economic Harmonization in the Canadian\U.S.\Mexican Grain-Livestock Subsector; 16754, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    5. Michael Ferrantino & Linda Linkins, 1999. "The effect of global trade liberalization on toxic emissions in industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 128-155, March.
    6. Jie He & David Roland-Holst, 2010. "Economic Growth, Energy demand and Atmospheric Pollution: Challenges and Opportunities for China in the future 30 years," Cahiers de recherche 10-11, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    7. Al-Amin, Abul Quasem & Abdul Hamid, Jaafar & Chamhuri, Siwar, 2008. "Macroeconomic effects of carbon dioxide emission reduction: a computable general equilibrium analysis for Malaysia," MPRA Paper 8667, University Library of Munich, Germany.
    8. Jeremiás Máté Balogh & Attila Jámbor, 2020. "The Environmental Impacts of Agricultural Trade: A Systematic Literature Review," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-1, February.
    9. Salvator Nkunzimana & H. Alan Love & C. Richard Shumway, 2003. "Mexican agricultural trade under the GATT," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 449-459.
    10. He, Jie, 2005. "Estimating the economic cost of China's new desulfur policy during her gradual accession to WTO: The case of industrial SO2 emission," China Economic Review, Elsevier, vol. 16(4), pages 364-402.
    11. Anna Strutt & Kym Anderson, 2000. "Will Trade Liberalization Harm the Environment? The Case of Indonesia to 2020," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(3), pages 203-232, November.
    12. Dasgupta, Susmita & Meisner, Craig & Wheeler, David & Jin, Yanhong, 2002. "Agricultural Trade, Development and Toxic Risk," World Development, Elsevier, vol. 30(8), pages 1401-1412, August.
    13. Peter Walkenhorst, 2004. "Domestic And International Environmental Impacts Of Agricultural Trade Liberalisation," International Trade 0401010, University Library of Munich, Germany.
    14. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    15. Colyer, Dale, 2002. "Environmental Impacts Of Agricultural Trade Under Nafta," Conference Papers 19104, West Virginia University, Department of Agricultural Resource Economics.
    16. 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.

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