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Trade and Tax Policy Reform and the Environment: The Economics of Soil Erosion in Developing Countries

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  • Ian Coxhead
  • Sisira Jayasuriya

Abstract

The widespread view that trade reform is bad for the environment has rarely been subjected to close scrutiny. In a developing country model we trace general equilibrium impacts of tax and tariff policy changes on upland resource allocation and, by implication, on the rate of erosion. Our analysis highlights the role of domestic market linkages as conduits between lowland and upland economies. When economywide effects are taken into account, indirect policies such as tariff reforms may in some cases provide better means for reducing upland erosion than would direct environmental policies.

Suggested Citation

  • Ian Coxhead & Sisira Jayasuriya, 1995. "Trade and Tax Policy Reform and the Environment: The Economics of Soil Erosion in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 631-644.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:3:p:631-644.
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    File URL: http://hdl.handle.net/10.2307/1243231
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    Cited by:

    1. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    2. IAN COXHEAD & Sisira Jayasuriya, "undated". "Economic Growth, Development Policy and the Environment in the Philippines," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 430, Wisconsin-Madison Agricultural and Applied Economics Department.
    3. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    4. Briones, Roehlano M., 2009. "Impact Assessment of National and Regional Policies Using the Philippine Regional General Equilibrium Model (PRGEM)," Discussion Papers DP 2009-03, Philippine Institute for Development Studies.
    5. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.
    6. Coxhead, Ian, 2000. "Consequences of a Food Security Strategy for Economic Welfare, Income Distribution and Land Degradation: The Philippine Case," World Development, Elsevier, vol. 28(1), pages 111-128, January.
    7. Roehlano M. Briones, 2009. "Impact Assessment of National and Regional Policies Using the Philippine Regional General Equilibrium Model," Development Economics Working Papers 22617, East Asian Bureau of Economic Research.
    8. Demeke, Bayou, 2004. "Is Globalization Bad For The Environment? International Trade And Land Degradation In Developing Countries:The Case Of Small Open Economy," 2004 Annual meeting, August 1-4, Denver, CO 20376, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Wiig, Henrik & Aune, Jens B. & Glomsrod, Solveig & Iversen, Vegard, 2001. "Structural adjustment and soil degradation in Tanzania: A CGE model approach with endogenous soil productivity," Agricultural Economics, Blackwell, vol. 24(3), pages 263-287, March.
    10. Khanna, Madhu & Zilberman, David, 1999. "Freer markets and the abatement of carbon emissions: the electricity-generating sector in India," Resource and Energy Economics, Elsevier, vol. 21(2), pages 125-152, May.
    11. Ananda, Jayanath & Herath, Gamini & Chisholm, Anthony H., 2001. "Determination of yield and erosion damage functions using subjectively elicited data: application to smallholder tea in Sri Lanka," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-15.

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