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GTAP Resources: Resource Display

GTAP Resource #936

"Effects of a Unilateral or Harmonized Tax on Fertilizer and Pesticides Use in EU Agriculture"
by Brockmeier, Martina, Josef Efken, Claudia Herok and Frank van Tongeren

Within the last two decades a major shift in public perception of fertilizers and pesticides used in agriculture has taken place. Whereas the "green revolution" has put emphasize on higher yields and lower unit costs due to chemical use in agriculture, public debate in most industrialized countries nowadays focuses on environmental and health risks which might be related to the application of these two inputs. Consequently, some industrialized countries moved a step further and introduced institutional restriction on chemical use in agriculture. To this group of countries belong some member countries of the European Union (EU) as well. Does a national restriction on chemical use in agriculture make sense within a Customs Union or does this only produce some kind of leakage effect between member countries?
To answer this question correctly, it is necessary to calculate the benefits and risks of fertilizers and pesticides used in agriculture on a global or regional basis. However, this is a very comprehensive and difficult task which certainly goes beyond the scope of a so-called minor application. Nevertheless, the objective of the paper is to show how the multi regional general equilibrium model GTAP (Global Trade Analysis Project) can be adopted to make a first step towards the analysis of restricted chemical use in agriculture. For this reason, we firstly discuss measures and policies related to chemical use in EU agriculture (chapter 2). Subsequently, chapter 3 presents a brief overview discussing the quantitative analysis which can be found in the literature. Furthermore, chapter 3 briefly introduces the standard GTAP model, explains how the tax instruments can be implemented and what kind of extensions are made to enable an analysis of restricted use of chemical agricultural inputs. In chapter 4 the simulations are presented and re-sults are discussed. The final chapter summarizes the main findings and gives some qualifications of the analysis.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: In: VAN TONGEREN and van MEIJL (Eds.), European Policy Issues in a Global Trade Analysis Framework, Report No. 6.01.06, Agricultural Economics Research Institute (LEI), Den Haag
Date: 2001
Created: Brockmeier, M. (2/19/2002)
Updated: Dimaranan, B. (2/21/2002)
Visits: 2,723
- Agricultural policies
- European Union

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