Reconsidering Argi-Environmental Policy Permitted by the Uruguay Round Agreement

Fraser, Iain M and Edwards, Geoff (2001) Reconsidering Argi-Environmental Policy Permitted by the Uruguay Round Agreement. Ecological Economics, 37 (2). 313 - 326. ISSN 0921-8009. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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Agri-environmental policies are increasingly being used to redress the balance between jointly-produced agricultural and environmental outputs, and are permitted by the Uruguay Round (UR) agreement with the general provision that they not distort trade. In this paper we argue that any market consequences of efficient, welfare-enhancing agri-environmental policies should not be considered trade-distorting. To consider them so is inconsistent with economic efficiency and with ecological integrity. Social cost-benefit analysis (CBA) is a more appropriate test and guide of trade-consistency for agri-environmental policies, and using trade effects as the test may not enhance social welfare. Moreover, specific provisions in the UR agreement restricting payments under agri-environmental policies to opportunity costs are not warranted on economic efficiency grounds, and consign the environment to a status subsidiary to agricultural output.

Item Type: Article
Uncontrolled keywords: Agri-environmental policy; Agreement on agriculture; General conditions; Specific conditions
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > Kent Business School > Agri-Environment Economics
Depositing User: Iain Fraser
Date Deposited: 31 Aug 2008 19:05
Last Modified: 04 Jul 2014 08:14
Resource URI: (The current URI for this page, for reference purposes)
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