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Trade Policy and Environmental Quality: The Case of Export Subsidies

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  • Leetmaa, Susan
  • Krissoff, Barry
  • Hartmann, Monika

Abstract

The United States and the European Union both employ export subsidies to stimulate wheat trade and to increase their competitiveness in world markets. The environmental consequences of these policies are being questioned. We stimulate reducing or removing export subsidies for wheat from the United States and the EU using a multicountry partial equilibrium model, and we analyze the impact of export subsidy policy reform on nitrogen fertilizer and other chemical use. Our findings indicate that the U.S. EEP program cannot be blamed for environmental degradation in terms of nitrate leaching, while EU wheat subsidies make only a small contribution to nitrate pollution.

Suggested Citation

  • Leetmaa, Susan & Krissoff, Barry & Hartmann, Monika, 1996. "Trade Policy and Environmental Quality: The Case of Export Subsidies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 232-240, October.
    • Handle: RePEc:cup:agrerw:v:25:y:1996:i:02:p:232-240_00
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    Cited by:

    1. Anania, Giovanni, 2001. "Modeling Agricultural Trade Liberalization. A Review," 2001 Annual meeting, August 5-8, Chicago, IL 20758, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Cemal Atici, 2008. "Agricultural Policies and Environmental Interaction in OECD Contries," ICER Working Papers 26-2008, ICER - International Centre for Economic Research.

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