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Bargaining for European Union Farm Policy Reform through U.S. Pesticide Restrictions

Published online by Cambridge University Press:  15 September 2016

Lizbeth Martin ,
Philip L. Paarlberg  and
John G. Lee
Lizbeth Martin
Affiliation:
Department of Agricultural Economics at Purdue University
Philip L. Paarlberg
Affiliation:
Department of Agricultural Economics at Purdue University
John G. Lee
Affiliation:
Department of Agricultural Economics at Purdue University
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Abstract

Future trade negotiations will incorporate environmental concerns. This study presents a framework to evaluate whether the United States would be willing to adopt a pesticide restriction in exchange for European Union liberalization of producer support. It outlines the conditions that must be met if a bargain is to occur. Partial equilibrium commodity models test whether the conditions for a bargaining solution are satisfied. The research results indicate that a potential bargain is possible for stricter U.S. environmental regulations in coarse grains if there is a sufficiently large positive EU externality. Conditions in the oilseed market preclude a bargain.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 28 , Issue 2 , October 1999 , pp. 137 - 146
Copyright
Copyright © 1999 Northeastern Agricultural and Resource Economics Association 

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