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The link between trade and the environment has aroused considerable interest both in terms of the impact of trade liberalisation on the environment, and also the impact of environmental policy on production and trade. Of key environmental concern at present is global warming and greenhouse gas (GHG) emissions. Global attempts to limit GHG emissions will also impact on agricultural trade and producer returns, particularly in countries such as NZ, where relatively large proportions of GHG emissions originate from the agricultural sector. This study uses a partial equilibrium agricultural trade model, extended to include production systems and GHG emissions, to analyse the effects of GHG mitigation policies on agricultural production and trade.
