Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-14T07:28:56.320Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  15 September 2016

Robert C. Johansson ,
Joseph Cooper  and
Utpal Vasavada
Robert C. Johansson
Affiliation:
Economic Research Service of the U.S. Department of Agriculture
Joseph Cooper
Affiliation:
Economic Research Service of the U.S. Department of Agriculture
Utpal Vasavada
Affiliation:
Economic Research Service of the U.S. Department of Agriculture
Get access

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.

Keywords

agriculturetrade reformenvironmentnondegradation
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 34 , Issue 1 , April 2005 , pp. 42 - 53
Copyright
Copyright © 2005 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abler, D., and Shortle, J. 1992. “Environmental and Farm Commodity Policy Linkages in the U.S. and the EC.” European Review of Agricultural Economics 19(2): 197–217.Google Scholar
Anderson, K. 1992. “Agricultural Trade Liberalisation and the Environment: A Global Perspective.” World Economy 15(1): 153–171.CrossRefGoogle Scholar
Antweiler, W., Copeland, B., and Taylor, M.S. 2001. “Is Free Trade Good for the Environment?” American Economic Review 91(4): 877–908.Google Scholar
Bhagwati, J., and Panagariya, A. 1996. The Economics of Preferential Trade Agreements. La Vergne, Tennessee: AEI Press.Google Scholar
Brooks, N., Whitton, C., and Carter, E. 2005. “Outlook for U.S. Agricultural Trade.” Electronic Outlook Report, U.S. Department of Agriculture, Economic Research Service, Washington, D.C. (February).Google Scholar
Burfisher, M.E. (ed.), Diao, X., Elbehri, A., Gehlhar, M., Gibson, P., Leetmaa, S., Mitchell, L., Nelson, F.J., Nimon, W., Normile, M.A., Roe, T., Shapouri, S., Skully, D., Smith, M., and Somwaru, A. 2001. Agricultural Policy Reform in the WTO: The Road Ahead. Agricultural Economic Report No. 802, U.S. Department of Agriculture, Economic Research Service, Washington, D.C.Google Scholar
Cole, M., Rayner, A., and Bates, J. 1998. “Trade Liberalisation and the Environment: The Case of the Uruguay Round.” The World Economy 21(3): 337–347.Google Scholar
Diao, X., and Roe, T. 2003. “Can a Water Market Avert the ‘Double-Whammy’ of Trade Reform and Lead to a ‘Win-Win’ Outcome?” Journal of Environmental Economics and Management 45(3): 708–723.Google Scholar
EPA [see U.S. Environmental Protection Agency].Google Scholar
Frankel, J., and Rose, A. 2002. “Is Trade Good or Bad for the Environment? Sorting Out the Causality.” Working Paper No. 9201, National Bureau of Economic Research (NBER) (September).Google Scholar
Hopkins, J., and Johansson, R.C. 2004. “Beyond Environmental Compliance: Sustainable Business Practices and the Bottom Line for Farmers.” Amber Waves (April): 30–37, U.S. Department of Agriculture, Economic Research Service.Google Scholar
House, R.M., McDowell, H., Peters, M., and Heimlich, R. 1999. Barnett, Vic, ed. (Novartis Foundation Symposium), “Agriculture Sector Resource and Environmental Policy Analysis: An Economic and Biophysical Approach.” In Environmental Statistics: Analyzing Data for Environmental Policy. New York: John Wiley & Sons.Google Scholar
Howitt, R.E. 1995. “Positive Mathematical Programming.” American Journal of Agricultural Economics 77(2): 329–342.Google Scholar
Johansson, R.C., and Kaplan, J.D. 2004. “A Carrot and Stick Approach to Environmental Improvement: Marrying Agri-Environmental Payments and Water Quality Regulations.” Agriculture and Resource Economics Review 31 (1): 91–104.Google Scholar
López, R. 1994. “The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization.” Journal of Environmental Economics and Management 27(2): 163–184.Google Scholar
Mitchell, G., Griggs, R., Benson, V., and Williams, J. 1998. “EPIC Information.” Available at http://www.brc.tamus.edu/epic/epfact2004.htm (accessed January 25, 2005).Google Scholar
Office of the U.S. Trade Representative. 2003. “Final Environmental Review of the U.S.-Chile Free Trade Agreement.” Available at http://www.ustr.gov (accessed January 25, 2005).Google Scholar
Padgitt, M., Newton, D., Penn, R., and Sandretto, C. 2000. “Production Practices for Major Crops in U.S. Agriculture, 1990-97.” Statistical Bulletin No. 969, U.S. Department of Agriculture, Economic Research Service, Washington, D.C. Google Scholar
Ribaudo, M., Colacicco, D., Langner, L.L., Piper, S., and Schaible, G.D. 1990. Natural Resources and Users Benefit from the Conservation Reserve Program. Agricultural Economic Report No. 627, U.S. Department of Agriculture, Economic Research Service, Washington, D.C.Google Scholar
River Network. 2004. “Understanding the Clean Water Act.” Available at http://www.rivernetwork.org/ (accessed January 25, 2005).Google Scholar
Stout, J., and Abler, D. 2003. “ERS/Penn State WTO Model Documentation.” Available at http://trade.aers.psu.edu/docu[-]mentation.cfm (accessed January 25, 2005).Google Scholar
United Nations Environment Programme. 2000. Environment and Trade—A Handbook. International Institute for Sustainable Development, Winnipeg, Canada.Google Scholar
U.S. Court of Appeals for the Tenth Circuit. 2001. American Wildlands et al. vs. Browner et al.: 260 F.3d 1192. Available at http://www.kscourts.org/cal0/cases/2001/08/00-1224.rtf (accessed January 25, 2005).Google Scholar
USDA [see U.S. Department of Agriculture].Google Scholar
U.S. Department of Agriculture. 1994. “Summary Report: 1992 National Resources Inventory.” Soil Conservation Service, Washington, D.C.Google Scholar
U.S. Department of Agriculture. 1997. Census of Agriculture—1997. National Agricultural Statistics Service, Washington, D.C. Available at http://www.nass.usda.gov/census/ (accessed January 25, 2005).Google Scholar
U.S. Department of Agriculture. 2003. “USDA Agricultural Baseline Projections to 2010.” Staff Report No. WAOB-2003-1, World Agricultural Outlook Board, Washington, D.C.Google Scholar
U.S. Department of Agriculture. 2004. “Briefing Room: U.S. Agricultural Trade.” Economic Research Service, Washington, D.C. Available at http://www.ers.usda.gov/Briefing/AgTrade/usagricultural[-]trade.htm (accessed January 25, 2005).Google Scholar
U.S. Environmental Protection Agency. 2000. “Water Quality Standards: Repository of Documents: Minnesota.” EPA/Office of Water, Washington, D.C. Available at http://www.epa.gov/ost/standards/wqslibrary/mn/mn.html (accessed January 25, 2005).Google Scholar
U.S. Environmental Protection Agency. 2002a. National Water Quality Inventory: 2000 Report to Congress. Report No. EPA841-R-02-001, EPA/Office of Water, Washington, D.C.Google Scholar
U.S. Environmental Protection Agency. 2002b. “Total Maximum Daily Loads: National Overview.” EPA/Office of Water, Washington, D.C. Available at http://www.epa.gov/owow/tmdl/status.html (accessed January 25, 2005).Google Scholar
U.S. Environmental Protection Agency. 2004. “Water Quality Standards: Nondegradation Policy.” EPA/Office of Water, Washington, D.C. Available at http://www.epa.gov/waterscience/standards/about/adeg.htm (accessed January 25, 2005).Google Scholar
U.S. Executive Order 13141. 1999. Executive Order 13141 of November 16, 1999: Environmental Review of Trade Agreements. The White House, Washington, D.C. Available at http://ceq.eh.doe.gov/nepa/regs/eos/eo13141.html (accessed January 25, 2005).Google Scholar
USTR [see Office of the U.S. Trade Representative].Google Scholar
Westcott, P.C., Young, C.E., and Price, J.M. 2002. “The 2002 Farm Act: Provisions and Implications for Commodity Markets.” Agricultural Information Bulletin No. 778, U.S. Department of Agriculture, Economic Research Service, Washington, D.C.Google Scholar
Williams, S.P., and Shumway, C.R. 2000. “Trade Liberalization and Agricultural Chemical Use: United States and Mexico.” American Journal of Agricultural Economics 82(1): 183–199.Google Scholar
World Wildlife Federation. 2001. “Balanced Process, Balanced Results: Sustainability Assessments and Trade.” WWF-World Wildlife Fund for Nature, Gland, Switzerland. Available at http://www.balancedtrade.panda.org. (accessed January 25, 2005).Google Scholar
World Trade Organization. 2001. “Ministerial Declaration—WT/MIN(01)/DEC/1, 20.” Available at www.wto.org/eng[-]lish/ (accessed January 25, 2005).Google Scholar
WTO [see World Trade Organization].Google Scholar