Adopt or not adopt? Mirror clauses and the European Green Deal. Issue 4 (12th August 2022)

• Record Type: Journal Article
• Authors: Beckman, Jayson; Ivanic, Maros; Jelliffe, Jeremy; Arita, Shawn
• Is Part Of: Applied economic perspectives and policy. Volume 44:Issue 4(2022)
• Page Start: 2014
• Page End: 2033
• Publication Date: 2022-08-12
• Subjects: CGE -- EU -- fertilizer -- pesticides -- standards; Agriculture -- Economic aspects -- Periodicals; Agriculture and state -- Periodicals; 338.105
• DOI: 10.1002/aepp.13317
• Languages: English
• ISSNs: 2040-5790

Abstract

Abstract: Mirror clauses have recently been discussed as a way of setting a level playing field for EU farmers in terms of the proposed European Green Deal (EGD) and the proposed reduction in usage of agricultural inputs. This study builds a Nash equilibrium model to determine if regions would implement these reductions to maintain open trade with the European Union. We find that more regions joining the EGD dampen the negative market impacts to the European Union, but we also find that major agricultural producers do not join the European Union in implementing the EGD.