Agricultural Economics and Development

Agricultural Economics and Development

The Effects of Agricultural Intra-Sectoral Trade Liberalization Indexes on Environmental Degradation in Iran

Document Type : Original Article

Authors
Z. Khavand 1
Jalil Khodaparast shirazi 2
1 PhD Student of Natural Resources and Environmental Economics, Faculty of Agriculture, Shiraz University, Shiraz, Iran
2 Corresponding Author, Assistant Professor and Faculty Member, Department of Economics, Faculty of Economics and Management, Islamic Azad University, Shiraz Branch, Shiraz, Iran
10.30490/aead.2020.262406.1006
Abstract
Impact of trade liberalization in different economic sectors on environmental pollution in Iran has become one of the challenges faced by policymakers. This study aimed at investigating the effects of agricultural intra-sectoral trade liberalization indexes on environmental degradation in Iran using the indexes of level of international trade (LIT), integration of international trade (IIT) and agriopenness in agriculture sector within Johansen-Juselius cointegration model (VECM) for the period of 1981-2015. The study results showed that all of these three indexes had significantly negative effects on the environmental degradation; also, intensity of energy consumption in agriculture sector and value added in this sector caused an increased environmental degradation. Finally, it was suggested that the government should pay more attention to transnational and extraterritorial cultivation while supporting the agricultural products with high relative advantages and less degradation impact on the environment of the country as well.
Keywords
Level of International Trade Index
Integration of International Trade Index
Openness
VECM
Environment

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