| The dissertation in its three essays investigates a regulation or mechanism of trade policy and its effects on the environment, or a mechanism of environmental policy and its effects on agricultural trade.;In the first essay, I calculate the welfare changes to domestic and foreign consumers and farmers, resulting from different regulatory instruments to decrease the use of methyl bromide, a widely used agricultural fumigant. It is being unilaterally banned under the Clean Air Act due to its depletion of the ozone layer. Although U.S. growers are restricted from using this input, agricultural trading partners may continue to use it potentially resulting in an increase in the world-wide chemical use. I have developed a regional partial equilibrium trade model covering five agricultural regions. Using a case study/simulation approach based on extensive interviewing in California, Florida and Mexico, the change in chemical use, the decrease in production, possible increase in fruit and vegetable prices, and increases in trade with Mexico are calculated. I examine how regulations such as marketable permits may result in lower welfare losses and lower world-wide use.;In the second essay, I investigate the conditions under which a region would wish to eradicate its trade-altering pest populations given the social costs of doing so. Pest-free zones are gaining popularity in both trade and environmental circles. Using a dynamic optimal control model, I look at the viability of achieving and maintaining pest-free regions, the trade enhancing aspects of this status, and the environmental benefits or costs since pesticides will be used to eradicate, or if established, to suppress the pests.;Many countries impose restrictions on agricultural trade citing the need to protect domestic agriculture from exotic pests. While these barriers can be justified scientifically, they are also used to protect domestic growers from foreign competition. With increases in commerce and tourism, insects are finding new methods to enter foreign countries. I examine when a government should employ such phytosanitary import restrictions and when another policy instrument might actually improve society's welfare and result in decreased pesticide use. |
