Environmental and Economic Implications of Alternative EC Policies

A net trade model that includes environmental variables is used to analyze economic and environmental implications of various EC policies, There are environmental benefits from CAP reform, but a fertilizer tax results in greater nitrate and phosphate abatement. The input tax also results in smaller drops in EC farm income compared to CAP reform Key Words: CAP reform, environmental policies, European Community, fertilizer tax, net trade model, Nitrate Directive Pollution from agricultural production is of growing concern in the EC, US, and other developed countries, It is increasingly recognized that price supports provided to farmers in major developed countries and other forms of support have encouraged expansion of output using production methods which are intensive in the use of potentially polluting inputs such as fertilizers, pesticides and fossil fuels. Furthermore, hig