Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-ndmmz Total loading time: 0 Render date: 2024-05-23T16:38:54.638Z Has data issue: false hasContentIssue false

15 - The environmental impact of green box subsidies: exploring the linkages

from PART IV - Green box subsidies and the environment

Published online by Cambridge University Press:  03 May 2010

Ricardo Meléndez-Ortiz
Affiliation:
ICTSD, Geneva, Switzerland
Christophe Bellmann
Affiliation:
ICTSD, Geneva, Switzerland
Jonathan Hepburn
Affiliation:
ICTSD, Geneva, Switzerland
Get access

Summary

Introduction

Over the past decade, the WTO AoA has overseen significant reductions in the most trade-distorting forms of agricultural support. As WTO members continue reform in this direction, attention is being redirected towards forms of agricultural subsidy contained in the so-called green box (Annex 2) of the AoA. Anyone concerned with the environmental impacts of agriculture should welcome this development, as the most trade-distorting kinds of agricultural subsidy are often those that create the strongest incentives for increasing output, intensifying agricultural activities and thus adversely affecting the environment.

The shift from more to less trade-distorting forms of agricultural support can be seen both in the significant increases of green box subsidies during the implementation period of the AoA and in the very large total volume of green box subsidies today. In the US, green box subsidies nearly doubled, from US$26,151 million in the period 1986 to 1988 to US$50,057 million in 2000. Accounted for partly by the entry of three new members following the period 1986 to 1988, green box expenditure by the EU grew from €9.2 billion to €22.1 billion in 2000. The latter figure is equivalent to roughly half of all EU spending on amber box subsidies for that year. In Japan, green box subsidies represented nearly 24 per cent of its total subsidies in 2000. Given the sheer size of green box subsidies across the OECD economies, it is hard to imagine that its environmental impacts are insignificant.

Type
Chapter
Information
Agricultural Subsidies in the WTO Green Box
Ensuring Coherence with Sustainable Development Goals
, pp. 427 - 467
Publisher: Cambridge University Press
Print publication year: 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abler, D. and Shortle, J. (1992), “Environmental and Farm Commodity Policy Linkages in the US and the EC”, European Review of Agricultural Economics 19(2): 197–217.CrossRefGoogle Scholar
ActionAid, Caritas, ,CIDSE et al. (2005), Green but Not Clean: Why a Comprehensive Review of Green Box Subsidies is Necessary, ActionAid, Caritas, CIDSE and Oxfam, London, UK, http://www.wer-profitiert.de/de/hintergruende/Green-but-not-clean.pdf.Google Scholar
Anderson, K. (1991), “Agricultural Trade Liberalisation and the Environment: A Global Perspective”, World Economy 15: 153–71.CrossRefGoogle Scholar
Blandford, D. and Josling, T. (2007), “Should the Green Box be Modified?” IPC discussion paper, International Food and Agricultural Trade Policy Council, Washington, DC., USA.Google Scholar
Bovard, J. (1991), The Farm Fiasco, San Francisco, CA, USA.Google Scholar
Brunner, A. and Huyton, H. (2007), The Environmental Impact of EU Agricultural Subsidies in the WTO Green Box, International Centre for Trade and Sustainable Development, Geneva, Switzerland.Google Scholar
Butler, R. A. (2006), “Carbon Finance Could Mean Billions for Indonesia”, http://www.mongabay.com, 5 November 2006.Google Scholar
,Convention on Biological Diversity (2005), The Impact of Trade Liberalization on Agricultural Biological Diversity: Domestic Support Measures and Their Effects on Agricultural Biological Diversity, CBD technical series no. 16, Secretariat of the Convention on Biological Diversity, Montreal, Canada.Google Scholar
,CEC (Commission of the European Communities) (1991), “Council Directive 91/676/EEC of 12 December 1991 Concerning the Protection of Waters against Pollution Caused by Nitrates from Agricultural Sources”, Official Journal of the European Communities L375/31, Brussels, Belgium.Google Scholar
,Centad (2006), Agriculture and NAMA Negotiations: Searching for the Landing Zone, Centre for Trade and Development, New Delhi, India.Google Scholar
Clay, J. (2004), World Agriculture and the Environment: A Commodity-by-Commodity Guide to Impacts and Practices, Washington, DC, USA.Google Scholar
Diakosavvas, D. (2003), “The Greening of the WTO: A Quantitative Appraisal of Agri-Environmental Policies in OECD Countries”, paper presented at the International Conference Agricultural Policy Reform and the WTO: Where Are We Heading? Capri, Italy, 23–6 June 2003.Google Scholar
Diakosavvas, D. (2007), “Agri-Environmental Policies in the Green Box in OECD Countries: An Overview”, paper presented at the ICTSD Workshop on Agricultural Subsidies in the WTO Green Box: Overview of Upcoming Issues from a Sustainable Development Viewpoint, Montreux, Switzerland, 16–17 April 2007.Google Scholar
Dimaranan, B., Hertel, T. and Keeney, R. (2003), “OECD, Domestic Support and Developing Countries”, discussion paper 2003/32, United Nations University World Institute for Development Economics Research, Helsinki, Finland.CrossRefGoogle Scholar
Domaskin, A. (2007), “Cass Considers $102M in Ethanol Plant Bonds”, In-Forum News, 8 May 2007.Google Scholar
,United Nations Food and Agriculture Organisation (2005), The State of Food and Agriculture, FAO Agriculture series no. 36, Food and Agricultural Organization, Rome, Italy.Google Scholar
Farmer, M. and Swales, V. (2004), The Development And Implementation Of Cross Compliance In The EU 15: An Analysis, Institute for European Environmental Policy for the Royal Society for the Protection of Birds, London, United Kingdom.Google Scholar
Flaaten, O. Heen, K. and Savanes, K. G. (1995), “The Invisible Resource Rent in Limited Entry and Quota Managed Fisheries: The Case of Norwegian Purse Seine Fisheries”, Marine Resource Economics 10: 341–56.CrossRefGoogle Scholar
Funaki, Y. (2004), “Progress in OECD's Work on Agri-environmental Indicators”, presented at the meeting of the working group Agriculture and Environment, with participation of the working group Environment and Sustainable Development/Pesticides, and the EEA Expert Network on Agriculture, Eurostat, Luxembourg, http://www.umweltbundesamt.at/fileadmin/site/umweltthemen/landwirtschaft/Umweltindikatoren/OECD_AEI_September_2004.pdf, 13–14 September 2004.Google Scholar
George, C. and Kirkpatrick, C. (2003), Sustainability Impact Assessment of Proposed WTO Negotiations: Preliminary Overview of Potential Impacts of the Doha Agenda – Assessment of Individual Trade Measures, Institute for Development Policy and Management, University of Manchester, Manchester, United Kingdom.Google Scholar
Greenhalgh, S., Selman, M. and Guiling, J. (2006), “Paying for Environmental Performance: Investing in Farmers and the Environment”, WRI Policy Note – Environmental Markets: Farm Bill Conservation Programs 1, http://pdf.wri.org/pn_envmkts_paying_for_performance.pdf.Google Scholar
Hepburn, J., Bartel, C. and Chamay, M. (2007), Agricultural Subsidies in the WTO “Green Box”: An Overview of the Key Issues from a Sustainable Development Viewpoint, International Centre for Trade and Sustainable Development, Geneva, Switzerland.Google Scholar
,Heritage Council of Ireland (1998), “Evaluation of Current Agricultural Schemes and Premia Payments Operating in Ireland”, http://www.heritagecouncil.ie/publications/agriherit/8.html.Google Scholar
Hermansen, Ø. and Flaaten, O. (2004), “Government Financial Transfers to the Fish Harvesting, Processing and Aquaculture Industries Norway 1990–2002”, working paper series in economics and management no. 01/04, Department of Economics and Management, Norwegian College of Fishery Science, University of Tromsø, Tromsø, Norway.Google Scholar
Holloway, M. H. and Jones, J. (1997), Environmental Cross-compliance: The Impact at Farm Level, Oxford, UK, http://www.rics.org/NR/rdonlyres/4DD6A7BA-C257-4D82-B47B-DD29165D5A9B/0/environmental_crosscompliance_19970101.pdf.Google Scholar
,International Centre for Trade and Sustainable Development (2007), “Agricultural Subsidies in the WTO ‘Green Box’: An Overview of the Key Issues from a Sustainable Development Viewpoint”, ICTSD draft background paper, International Centre for Trade and Sustainable Development, Geneva, Switzerland.Google Scholar
Kirkpatrick, C. and George, C. (2005), Sustainability Impact Assessment of Proposed WTO Negotiations: Preliminary Overview of Potential Impacts of the Doha Agenda – Overall Project Final Report for Sector Studies: Agriculture. Distribution Services and Forestry, Institute for Development Policy and Management, University of Manchester, Manchester, United Kingdom.Google Scholar
Koplow, D. (2006), Biofuels – At What Cost?: Government support for ethanol and biodiesel in the United States, prepared by Earth Track, Inc. Cambridge MA, United States for the Global Subsidies Initiative (GSI) of International Institute for Sustainable Development (IISD), Geneva, Switzerland.Google Scholar
Vina, A., Fransen, L., Faeth, P. et al. (2006), Reforming Agricultural Subsidies: “No Regrets” Policies for Livelihoods and the Environment, World Resources Institute, Washington, DC, USA.Google Scholar
Legg, W. (2007), “Agri-environmental Programs in OECD Countries” in Arha, Kaush, Josling, Tim, Sumner, Daniel A. and Thompson, Barton H. (eds.), US Agricultural Policy and the 2007 Farm Bill: Promoting the Economic Resilience and Conserving the Ecological Integrity of American Farmlands, Woods Institute for the Environment, Stanford University, Stanford, CA, USA.Google Scholar
Massink, H. and Meester, G. (2002), Farming and Free Trade: Effects of Trade Liberalisation and EU enlargement on the Dutch Agricultural Sector – an Exploratory Study, Ministry of Agriculture, Nature Management and Fisheries, the Hague, the Netherlands.Google Scholar
Mayrand, K., Dionne, S., Paquin, M. et al. (2003), The Economic and Environmental Impact of Agricultural Subsidies: An Assessment of the 2002 US Farm Bill and the Doha Round, Unisféra International Centre, Montreal, Canada.Google Scholar
Narian, P. (2001), “Agri-environmental Statistics for Compilation of Indicators, Accounts and Meeting Other Needs of Decision Makers”, Food and Agriculture Organisation, Rome, Italy, http://www.unescap.org/stat/envstat/stwes-032.pdf.Google Scholar
Nepstad, D. C., Schwartzman, S., Bamberger, B. et al. (2006a), “Inhibition of Amazon Deforestation and Fire by Parks and Indigenous Lands”, Conservation Biology 20(1): 65–73.CrossRefGoogle ScholarPubMed
Nepstad, D. C., Stickler, C. M. and Almeida, O. T. (2006b), “Globalization of the Amazon Soy and Beef Industries: Opportunities for Conservation”, Conservation Biology 20(6): 1595–603.CrossRefGoogle ScholarPubMed
,Organization for Economic Cooperation and Development (1994), National Policies and Agricultural Trade: Country Study – Turkey, Organization for Economic Cooperation and Development, Paris, France.Google Scholar
,Organization for Economic Cooperation and Development (2005a), Environmentally Harmful Subsidies: Challenges and Outlook for Reform, Organization for Economic Cooperation and Development, Paris, France.Google Scholar
,Organization for Economic Cooperation and Development (2005b), Environmental Requirements and Market Access, Organization for Economic Cooperation and Development, Paris, France.Google Scholar
,Organization for Economic Cooperation and Development (2005c), Agriculture, Trade and the Environment: The Arable Crop Sector, Organization for Economic Cooperation and Development, Paris, France.Google Scholar
,Organization for Economic Cooperation and Development (2006), Decoupling: Policy Implications, Organization for Economic Cooperation and Development, Paris, France.Google Scholar
Oltmer, K., Nijkamp, P., Florax, R. et al. (2000), “A Meta-analysis of Environmental Impacts of Agri-environmental Policies in the European Union”, Tinbergen Institute discussion paper no. TI 2000–083/3, Tinbergen Institute, Amsterdam, the Netherlands.Google Scholar
Pollan, M. (2006), The Omnivore's Dilemma: A Natural History of Four Meals, Penguin Press, New York, USA.Google Scholar
Ray, D. (2006), “Not all Environmental Programs May Be WTO-compliant”, MidAmerica Farmer Grower 23(36).Google Scholar
Roberts, I. M. (1997), Australia and the Next Multilateral Trade Negotiations for Agriculture, ABARE research report 97.6, Canberra, Australia.Google Scholar
Ruffer, T., Jones, S. and Akroyd, S. (2002), Development Box Proposals and their Potential Effect on Developing Countries, Oxford Policy Management, Oxford, United Kingdom.Google Scholar
Smith, K. and Weinberg, M. (2004), “Measuring the Success of Conservation Programs”, Amber Waves 2: 14–21, http://www.ers.usda.gov/Amberwaves/September04/pdf/feature_conserva-tionsept2004.pdf.Google Scholar
Speir, J., Bowden, M.-A., Ervin, D. et al. (2003), Comparative Standards for Intensive Livestock Operations in Canada, Mexico and the United States, Commission for Environmental Cooperation, Montreal, Canada.Google Scholar
Stiglitz, J. E. and Charlton, A. (2004), An Agenda for the Development Round of Trade Negotiations in the Aftermath of Cancun, Report for the Commonwealth Secretariat, Initiative for Policy Dialogue, Oxford, UK.Google Scholar
Swinbank, A. (2005), How EU Agri-Environmental Policy Might Have Differed Under Various WTO Scenarios, Institute of Governmental Studies, University of California, Berkeley, CA, USA.Google Scholar
,UNCTAD India Team (2006), Green Box Subsidies: A Theoretical and Empirical Assessment (draft), presented at the United Nations Conference on Trade and Development, Geneva, Switzerland, 28 September 2006.Google Scholar
,UNCTAD India Team (2007), Green Box Subsidies: A Theoretical and Empirical Assessment, UN Conference on Trade and Development, Geneva, Switzerland.Google Scholar
,UN Development Programme (2003), Making Global Trade Work for People, New York, USA.Google Scholar
,UNDP and IISD (2000), Environmental and Trade: A Handbook, UN Development Programme and IISD, Geneva, Switzerland.Google Scholar
,UNEP/CBD (2005), The Impact of Trade Liberalization on Agricultural Biological Diversity, CBD technical series no. 16, Convention on Biological Diversity, Montreal, Canada.Google Scholar
Vasavada, U. and Warmerdam, , , S. (1998), “Environmental Policy and the WTO: Unresolved Questions”, Agricultural Outlook 256: 12–14.Google Scholar
,World Trade Organisation (1999), Guide to the Uruguay Round Agreements, the Hague, the Netherlands.Google Scholar
,World Trade Organisation (2002), Notification: India – Domestic Support, G/AG/N/IND/2, World Trade Organization Committee on Agriculture, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2004a), “Decision Adopted by the General Council on 1 August 2004, General Council, WT/L/579, World Trade Organization, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2004b), Green Box Measures: Note by the Secretariat, TN/AG/S/10, World Trade Organization Committee on Agriculture in Special Session, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2005a), Ministerial Declaration Adopted on 18 December 2005, WT/MIN/(05)/DEC, World Trade Organization, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2005b), Notification: Brazil – Domestic Support, G/AG/N/BRA/23, World Trade Organization Committee on Agriculture, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2006a), Notification: European Communities – Domestic Support, G/AG/N/EEC/53, World Trade Organization Committee on Agriculture, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2006b), Notification: People's Republic of China – Domestic Support, G/AG/N/CHN/8, World Trade Organization Committee on Agriculture, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2006c), Notification: United States – Domestic Support, G/AG/N/USA/51, World Trade Organization Committee on Agriculture, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2006d), World Trade Report 2006, World Trade Organization, Geneva, Switzerland.Google Scholar
,World Trade Organisation (2007), Notification: Japan – Domestic Support, G/AG/N/JPN/124, World Trade Organization Committee on Agriculture, Geneva, Switzerland.Google Scholar
Zhao, Y., Wang, H. and Linxuegui, M. (2003), Green Box Support Measures under the WTO Agreement on Agriculture and Chinese Sustainable Development, IISD and the Chinese Academy for International Trade and Economic Cooperation (CAITEC), Winnipeg, Canada.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×