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...