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Agricultural Trade, Institutions, and Depletion of Natural Resources

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  • Sheetal Sekhri
  • Paul Landefeld

Abstract

Globalization can lead to either conservation or depletion of natural resources that are used in the production of traded goods. Rising prices may lead to better resource man- agement. Alternatively, stronger incentives to extract these resources may exacerbate their decline- especially in open access institutional frameworks. We examine the impact of agricultural trade promotion on the groundwater extraction in India using nationally representative data from 1996-2005. We nd evidence that trade promotion leads to de- pletion of groundwater reserves. Access to world markets does not result in emergence of institutions that would enable protection of the resource.

Suggested Citation

  • Sheetal Sekhri & Paul Landefeld, 2013. "Agricultural Trade, Institutions, and Depletion of Natural Resources," Virginia Economics Online Papers 405, University of Virginia, Department of Economics.
    • Handle: RePEc:vir:virpap:405
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    More about this item

    Keywords

    Groundwater Depletion; Agricultural Trade;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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