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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
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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 

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