Agricultural multifunctionality and trade liberalisation
This paper employs a partial equilibrium trade model to analyse the interaction of trade and environmental policy in the context of agriculture’s multifunctionality. We formally demonstrate that free trade is suboptimal if no efficient environmental policy addressing the provision of multifunctional benefits is in place. However, tariff reductions in a large net-importing country reinforce the incentive for that country to introduce environmental policy, though this policy will be strategically distorted to partly substitute for the tariff. Despite its strategic character, this environmental policy programme will unambiguously enhance global welfare if it is introduced in conjunction with tariff reductions. We conclude that, although the multifunctionality argument may lend some support to the criticism of trade liberalisation, the argument is not solid when trade liberalisation induces the introduction of environmental policy.
Volume (Year): 82-83 (2007)
Issue (Month): p ()
|Contact details of provider:|| Postal: |
Web page: http://www.sae2.inra.fr/Departement-Recherches/Recherches-departement-SAE2/Raestud/%28key%29/3
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rae:jouces:v:82-83:y:2007:i:p:57-73. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Saux-Nogues)
If references are entirely missing, you can add them using this form.