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

Author

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

Abstract

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.

Suggested Citation

  • Johansson, Robert C. & Cooper, Joseph & Vasavada, Utpal, 2005. "Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 42-53, April.
    • Handle: RePEc:cup:agrerw:v:34:y:2005:i:01:p:42-53_00
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    Cited by:

    1. Johansson, Robert C. & Livingston, Michael J. & Westra, John & Guidry, Kurt, 2006. "Simulating the U.S. Impacts of Alternative Asian Soybean Rust Treatment Regimes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 116-127, April.
    2. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    3. Fernandez-Cornejo, Jorge & Nehring, Richard F. & Newcomb Sinha, Elizabeth & Grube, Arthur & Vialou, Alexandre, 2009. "Assessing Recent Trends in Pesticide Use in U.S. Agriculture," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49271, Agricultural and Applied Economics Association.
    4. Hu, Dongmin & Nian, Hongyu & Wang, Huanhuan, 2025. "Economic well-being and farming sustainability when trade shocks occur: Insights from agricultural households," China Economic Review, Elsevier, vol. 93(C).

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