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

  • Beghin, John
  • Dessus, Sebastien
  • Roland-Holst, David
  • van der Mensbrugghe, Dominique

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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Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 17 (1997)
Issue (Month): 2-3 (December)
Pages: 115-131

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Handle: RePEc:eee:agecon:v:17:y:1997:i:2-3:p:115-131
Contact details of provider: Web page: http://www.blackwell-synergy.com/loi/agec

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  1. 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.
  2. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," OECD Development Centre Working Papers 99, OECD Publishing.
  3. 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.
  4. 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.
  5. 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, 07.
  6. 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.
  7. Copeland, Brian R & Taylor, M Scott, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 755-87, August.
  8. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1995. "Trade Liberalization and the Environment in the Pacific Basin: Coordinated Approaches to Mexican Trade and Environment Policy," Staff General Research Papers 1588, Iowa State University, Department of Economics.
  9. 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 738-54, September.
  10. 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.
  11. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1994. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers 1589, Iowa State University, Department of Economics.
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