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

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  • Johansson, Robert C.
  • Cooper, Joseph C.
  • Vasavada, Utpal

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.

Suggested Citation

  • Johansson, Robert C. & Cooper, Joseph C. & Vasavada, Utpal, 2005. "Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), pages 1-12, April.
    • Handle: RePEc:ags:arerjl:10195
    DOI: 10.22004/ag.econ.10195
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    References listed on IDEAS

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    1. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
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    Cited by:

    1. Johansson, Robert C. & Livingston, Michael J. & Westra, John & Guidry, Kurt, 2006. "Simulating the U.S. Impacts of Alternative Asian Soybean Rust Treatment Regimes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 116-127, April.
    2. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    3. Fernandez-Cornejo, Jorge & Nehring, Richard F. & Newcomb Sinha, Elizabeth & Grube, Arthur & Vialou, Alexandre, 2009. "Assessing Recent Trends in Pesticide Use in U.S. Agriculture," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49271, Agricultural and Applied Economics Association.

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