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Mitigation Of Greenhouse Gas Emissions: The Impacts On A Developed Country Highly Dependent On Agriculture

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  • Saunders, Caroline M.
  • Wreford, Anita

Abstract

This paper focuses on the impact of mitigating greenhouse gases (GHG) on agricultural trade. In particular, the paper assesses the impact on New Zealand (NZ), which is highly reliant on agricultural trade, with a high percentage of its total GHG emissions are originating in the agricultural sector. The paper also analyses the impact of mitigation strategies in the European Union (EU), which has a low proportion of GHG coming from agriculture, a highly protected agriculture sector, and is a major market and competitor for NZ. Results from a partial equilibrium trade model, the LTEM, show clearly that while these mitigation strategies achieve the goal of GHG reduction, producer returns are also negatively affected. The value of these changes in emissions are then calculated, based on US$15/tonne of carbon dioxide (CO2), and producer returns adjusted for this. Although this value of CO2 goes some way towards offsetting the reduction in producer returns, it would need to be considerably greater in order to provide any significant compensation.

Suggested Citation

  • Saunders, Caroline M. & Wreford, Anita, 2003. "Mitigation Of Greenhouse Gas Emissions: The Impacts On A Developed Country Highly Dependent On Agriculture," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25912, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25912
    DOI: 10.22004/ag.econ.25912
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    References listed on IDEAS

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    1. Roningen, Vernon & Dixit, Praveen & Sullivan, John & Hart, Tracey, 1991. "Overview of the Static World Policy Simulation (SWOPSIM) Modeling Framework," Staff Reports 278390, United States Department of Agriculture, Economic Research Service.
    2. Stephen Bocking, 2001. "Structure and Agent in the Scientific Diplomacy of Climate Change: An Empirical Case Study of Science-Policy Interaction in the Intergovernmental Panel on Climate Change (Advances in Global Change Res," Global Environmental Politics, MIT Press, vol. 1(4), pages 108-114, November.
    3. Roningen, Vernon Oley, 1986. "A Static World Policy Simulation (Swopsim) Modeling Framework," Staff Reports 277898, United States Department of Agriculture, Economic Research Service.
    4. Roningen, Vernon & Sullivan, John & Dixit, Praveen, 1991. "Documentation of the Static World Policy Simulation (SWOPSIM) Modeling Framework," Staff Reports 278599, United States Department of Agriculture, Economic Research Service.
    5. Roningen, Vernon & Dixit, Praveen & Sullivan, John & Hart, Tracy, 1991. "Overview of the Static World Policy Simulation (SWOPSIM) Modeling Framework," Staff Reports 278513, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Carlo Giupponi & Francesco Bosello & Andrea Povellato, 2007. "A Review of Recent Studies on Cost Effectiveness of GHG Mitigation Measures in the European Agro-Forestry Sector," Working Papers 2007.14, Fondazione Eni Enrico Mattei.

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    Environmental Economics and Policy;

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