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Divergent Environmental Regulations and Trade Liberalization
Authors:Mary Bohman  Patricia J Lindsey
Institution:Department of Agricultural Economics, University of British Columbia, Vancouver, B.C.;Department of Agricultural and Resource Economics, Oregon State University, Corvallis, Oregon.
Abstract:The market and nonmarket consequences of environmental regulations and of trade liberalization under different regulatory regimes are explored in the context of the NAFTA through simulation modeling of the North American sheep and lamb markets. Producers are able to shift much of the cost of regulation to domestic and foreign consumers and thus gain from regulation. In the cases investigated, nonmarket effects are unlikely to reverse the sign of market gains or losses, and "level playing field" regulations may or may not be preferred.
Keywords:
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