This paper develops an extended general equilibrium model of international trade in order to analyze the welfare effects of agricultural trade liberalization if a large country influences its terms of trade by means of environmental policy. We derive globally optimal first-best and second-best...

We use an extended partial equilibrium trade model to derive optimal environmental policy responses to tariff reduction requirements and assess the impact of such policies on the welfare of trading partners. We find that countries which attribute preferential political weights to farmers'...

The paper develops a conceptual framework for the welfare analysis of agri-environmental policy targeting the use of agricultural inputs within an international trade context. Based on a two-factor production model, we analyze the marginal social costs of agricultural production with and without...

The paper employs a partial equilibrium model of international trade to derive optimal environmental policy responses to tariff reduction requirements and assesses the impact of such policies on social welfare. The domestically optimal policy adjustment for a large importing country committing...

The number of agri-environmental programs launched under EU Regulation 1257/99, as well as the share of agricultural land covered under these programs, varies significantly between EU member states. National differences in the uptake of agri-environmental schemes would be economically efficient...

Small countries may benefit from the formation of a trade bloc, since their combined market power will enable them to manipulate the terms of trade. The question of interest is whether countries will benefit from the enlargement of a trading bloc, if trade liberalization induces countries to...

The number of agri-environmental programs, as well as the share of agricultural land covered under these programs, varies significantly between EU member states. We analyze national differences in the uptake of agri-environmental programs by developing a model of countries' political objective...

Offering agri-environmental payments to address the various positive and negative environmental nonmarket effects of European Union agriculture might be an efficient way of dealing with market imperfections. However, the complex interaction between farming practices and agri-environmental...

This paper analyses how the enlargement of a trade bloc will affect national welfare. We establish a partial equilibrium model of a trade bloc either operating as a monopoly with a competitive fringe or facing a duopolistic game in production taxes/subsidies. Given this framework, we demonstrate...

Offering agri-environmental payments to address the various positive and negative environmental nonmarket effects of European Union agriculture might be an efficient way of dealing with market imperfections. However, the complex interaction between farming practices and agri-environmental...