Skip to main content Accessibility help
×
×
Home

Effect of a Differentially Applied Environmental Regulation on Agricultural Trade Patterns and Production Location: The Case of Methyl Bromide

  • Lori Lynch (a1), Scott Malcolm (a2) and David Zilberman (a3)

Abstract

It has been hypothesized that differentially applied environmental regulations create pollution havens, as firms will choose to invest in countries with lax environmental standards. Using a theoretical model of pest control adoption and an empirical spatial equilibrium model, we examine one such environmental regulation, a U.S. ban on methyl bromide, to determine if an agricultural pollution haven will be created in Mexico. Alterations in agricultural production location, trade patterns, and methyl bromide use are determined. We find that, under the assumptions held, Mexico will not dramatically increase its use of methyl bromide following the ban. Sensitivity analysis to this result is conducted.

Copyright

References

Hide All
Agricultural Marketing Service. Various years. The following publications were consulted: “Fresh Fruit and Vegetable Arrivals in Western Cities,” Atlanta Wholesale Market Prices, Fresh Fruits and Vegetables,” “Chicago Fruit and Vegetable Wholesale Market Prices,” “Los Angeles Fresh Fruit and Vegetable Wholesale Market Prices,” “Fresh Fruit and Vegetable Shipments,” and “New York City Wholesale Prices and Arrivals” (the last unpublished by Scott Miller). Agricultural Marketing Service, U.S. Department of Agriculture, Washington, D.C.
Agricultural Marketing Service. Various years. “Fruit and Vegetable Truck Rate and Cost Summary.” Agricultural Marketing Service, U.S. Department of Agriculture, Washington, D.C.
AMS [see Agricultural Marketing Service].
CAADES. 1996. “Presentacion de Resultados Temporada Horticola, 1990-1995.Asembla Estatal Especializada de Productores de Hortalizas, Culiacan, Sinaloa, Mexico.
California Agricultural Statistics Service. Various years. “Agricultural Commissioners’ Data.” California Agricultural Statistics Service, Sacramento, CA.
California Strawberry Commission. 1998. Strawberry production statistics provided by Christopher Winterbottom, California Strawberry Commission, Watsonville, CA.
Calvin, L., and Barrios, V. 1998. “Marketing Winter Vegetables from Mexico.” Vegetables and Specialties Situation and Outlook Report (April): 2938. Economic Research Service, U.S. Department of Agriculture, Washington, D.C.
Carpenter, J., Gianessi, L., and Lynch, L. 2000. “The Economic Impact of the Scheduled U.S. Phaseout of Methyl Bromide.” National Center for Food and Agricultural Policy, Washington, D.C. Available online at http://www.ncfap.org (accessed April 2000).
Confederation of Agriculture Associations of the State of Sinaloa [see CAADES].
Cook, R.L., Benito, C., Matson, J., Runsten, D., Shwedel, K., and Taylor, T. 1991. “Implications of the North American Free Trade Agreement (NAFTA) for the U.S. Horticultural Sector.” In NAFTA: Effects on Agriculture (Vol. IV: “Fruit and Vegetable Issues”). U.S. Department of Agriculture, Washington, D.C.
Copeland, B.R., and Taylor, M.S. 2003. “Trade, Growth and the Environment.” Working Paper No. 9823, National Bureau of Economic Research, Cambridge, MA.
Dean, J.M. 1992. “Trade and the Environment: A Survey of the Literature.” In Low, P., ed., International Trade and the Environment. World Bank Discussion Paper No. 159, The World Bank, Washington, D.C.
Dean, J.M., Lovely, M.E., and Wang, H. 2005. “Are Foreign Investors Attracted to Weak Environmental Regulations? Evaluating the Evidence from China.” World Bank Policy Research Working Paper No. 3505, The World Bank, Washington, D.C.
Deepak, M.S., Spreen, T., and VanSickle, J., 1994. “An Analysis of the Impact of a Ban on Methyl Bromide on the U.S. Winter Fresh Vegetable Market.” University of Florida, Gainesville.
Deepak, M.S., Spreen, T., and VanSickle, J. 1996. “An Analysis of the Impact of a Ban on Methyl Bromide on the U.S. Winter Fresh Vegetable Market.” Journal of Agricultural and Applied Economics 28(2): 433443.
EPA [see U.S. Environmental Protection Agency].
Ferguson, W., and Padula, A. 1994. “Economic Effects of Banning Methyl Bromide for Soil Fumigation.” Agricultural Economics Report No. 677 (pp. 1-11), Economic Research Service, U.S. Department of Agriculture, Washington, D.C.
Florida Agricultural Statistics Service. Various years. Florida Agricultural Statistics, Vegetable Summary. Florida Agricultural Statistics Service, Tallahassee, FL.
Georgia Agricultural Statistics Service. 1997. “Georgia Agricultural Facts.” Georgia Agricultural Statistics Service, Atlanta, GA.
Lynch, L. 1996. “Agricultural Trade and Environmental Concerns: Three Essays Exploring Pest Control Regulations and Environmental Issues.” Ph.D. dissertation, Department of Agricultural and Resource Economics, University of California, Berkeley, CA.
McCarl, B.A., and Spreen, T.H. 1980. “Price Endogenous Mathematical Programming Models as a Tool for Sector Analysis.” American Journal of Agricultural Economics 62(1): 87102.
Mexican Department of Agriculuture. Various years. “3.” Secretaria de Agricultura, Ganaderia y Desarrollo Rural, Centro de Estadistica Agropecuaria.
National Agricultural Statistics Service. Various years. “Agricultural Prices Annual Summary.” National Agricultural Statistics Service, Washington, D.C.
Nordstrom, H., and Vaughan, W. 1999. Trade and the Environment. World Trade Organization, Geneva, Switzerland.
North Carolina Agricultural Statistics Service. Various years. “Vegetable Summary.” North Carolina Agricultural Statistics Service, Raleigh, NC.
Peters, M.A., and Spreen, T.H. 1989. “Price Endogenous Mathematical Programming Models and Integrability: An Alternative Approach.” American Journal of Agricultural Economics 71(5): 1342.
Scott, S.W. 1991. “International Competition and Demand in the United States Fresh Winter Vegetable Industry.” Master's thesis, University of Florida, Gainesville.
Sonoran Growers’ Association. Various years. Personal communication. Sonora, Mexico.
South Carolina Agricultural Statistics Service. Various years. Unpublished vegetable production statistics, South Carolina Agricultural Statistics Service, Columbia, SC.
Spreen, T.H., VanSickle, J.J., Moseley, A.E., Deepak, M.S., and Mathers, L. 1995. “Use of Methyl Bromide and the Economic Impact of Its Proposed Ban on the Florida Fresh Fruit and Vegetable Industry.” University of Florida Technical Bulletin No. 898, University of Florida, Gainesville.
Sullivan, J. (ed.). 1994. “Environmental Policies: Implications for Agricultural Trade.” Agricultural Economic Report No. 252 (June). Agriculture and Trade Analysis Division, Economic Research Service, U.S. Department of Agriculture, Washington, D.C.
Sunding, D., Yarkin, C., Zilberman, D., Siebert, J., and Marco, A. 1993. “Economic Impacts of Methyl Bromide Cancellation in California.” California Department of Food and Agriculture, Sacramento, CA.
Takayama, T., and Judge, G.G. 1971. Spatial and Temporal Price and Allocation Models. Amsterdam: North-Holland Publishing Co.
Texas Agricultural Statistics Service. Various years. “Vegetable Summary.” Texas Agricultural Statistics Service, Austin, TX.
Urbach, F. 1990. “Ozone Depletion: Health and Environmental Consequences.” Nature 344(6267): 598.
U.S. Department of Agriculture. 1993. The Biologic and Economic Assessment of Methyl Bromide.” National Agricultural Pesticide Impact Assessment Program, U.S. Department of Agriculture, Washington, D.C.
U.S. Department of Agriculture. 1997. Mexican import data provided by Ron Sponaugle, Animal and Plant Health Inspection Service, U.S. Department of Agriculture, Riverdale, MD.
U.S. Environmental Protection Agency. 2002. “Methyl Bromide Use Information.” Available online at http://www.epa.gov/ozone/mbr/background/index.html (accessed April 8, 2005).
VanSickle, J.J., Belibasis, E., Cantliffe, D., Thompson, G., and Oebker, N. 1994. “Competition in the U.S. Winter Fresh Vegetable Industry.” Agricultural Economics Report No. 691, Economic Research Service, U.S. Department of Agriculture, Washington, D.C.
Wilson, P., Thompson, G.D., and Cook, R. 1997. “Mother-Nature, Business Strategy, and Economics.” Choices (1st Quarter): 1825.
Willig, R.D. 1976. “Consumer Surplus without Apology.” American Economic Review 66(4): 589597.
Yarkin, C., Sunding, D., Zilberman, D., and Siebert, J. 1994. “All Crops Should Not Be Treated Equally.” California Agriculture 48 (May-June): 1015.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Agricultural and Resource Economics Review
  • ISSN: 1068-2805
  • EISSN: 2372-2614
  • URL: /core/journals/agricultural-and-resource-economics-review
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed