The Effects of EC Environmental Policies on Agricultural Trade and Economic Welfare

The Effects of EC Environmental Policies on Agricultural Trade and Economic Welfare

There is a growing concern throughout Europe with the environmental effects of intensive farming practices. This new awareness has led to the demand for stricter environmental regulations. The theoretical part of the paper explores the possible effects of environmental regulations. The theoretical part of the paper explores the possible effects of environmental regulations and health standards on competitive advantage, trade and welfare. The empirical part of the paper is based on the SWOPSIM model TEPSIM, which encompasses factors of production, such as pesticides, fertilizer and land. Using this extended SWOPSIM framework the impact of alternative environmental policy scenarios on agricultural trade and economic welfare is simulated.