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Agricultural Trade Liberalization and Greenhouse Gas Emissions: Modeling the Linkages Using a Partial Equilibrium Trade Model

Published online by Cambridge University Press:  15 September 2016

Caroline Saunders  and
Anita Wreford
Caroline Saunders
Affiliation:
Agribusiness and Economics Research Unit at Lincoln University in Canterbury, New Zealand
Anita Wreford
Affiliation:
Agribusiness and Economics Research Unit at Lincoln University in Canterbury, New Zealand
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Abstract

Global attempts to limit greenhouse gas (GHG) emissions may impact on agricultural trade and producer returns, particularly in countries such as New Zealand, where a relatively large proportion of GHG emissions originate from the agricultural sector. This study uses an extended partial equilibrium agricultural trade model to analyze the effects of trade policy liberalization on agricultural production and trade, as well as on GHG emissions. Further analysis combines trade liberalization with GHG mitigation policy in the New Zealand and European dairy sectors, and the effects on producer returns and GHG emissions are predicted. As expected, full trade liberalization in the OECD (Organization for Economic Cooperation and Development) countries enhances producer returns in New Zealand's dairy sector, but reduces returns in the European Union's dairy sector.

Keywords

partial equilibrium trade modelagricultural production systemgreenhouse gas emissions
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 34 , Issue 1 , April 2005 , pp. 32 - 41
Copyright
Copyright © 2005 Northeastern Agricultural and Resource Economics Association 

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