Agri-environmental policy in the U. S. and EC: The effect of fertilizer policies on production and trade of wheat and corn
The objectives of this study are to investigate how agri-environmental policies aimed at reducing fertilizer use affect cost of production, marginal costs, supply, welfare, and trade of wheat and corn of some of the major producing countries: the US for wheat and corn, France for wheat and corn, and the UK for wheat. Two separate policy instruments are considered, a 100% tax on fertilizer, and a 33% quantitative restriction on its use. The analytical requirements for this study are two-fold: cost of production estimate, and international trade simulation. First, a method of estimating commodity supply elasticities with respect to fertilizer prices (the tax effect) and quantities of fertilizer used (the restriction effect) from cost estimation is developed. Second, these supply elasticities are used to shock a simulation model under alternative unilateral, bilateral, and multilateral fertilizer policy scenarios. The estimated supply elasticities support the hypothesis that fertilizer policy will adversely affect those producing countries that use the input most intensively.
- Research Organization:
- Ohio State Univ., Columbus, OH (United States)
- OSTI ID:
- 7268697
- Country of Publication:
- United States
- Language:
- English
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