The Effects of Agricultural Product Exports on Environmental Quality

Abstract

Concerns about the environmental degradation of agricultural activities have increased with trade openness and globalization. In this study, the effects of agricultural product exports on environmental quality are investigated using panel data and instrumental variable regression models for 23 developed and 43 developing countries during 2002–2020. The results indicate that the expansion of agricultural product exports from developing countries has a detrimental effect on the environmental quality of these countries. Total agricultural exports increase pollution due to greenhouse gas emissions in developing countries, while they decrease the N2O emissions in developed countries. Moreover, raw agricultural exports have a positive and significant effect on agricultural pollution emissions in developing countries, while they have a negative and significant effect on N2O emissions in developed countries. In many developing countries, export development is an important policy objective, and agricultural exports are among the most important export sectors. Hence, policymakers need to consider the effects of agricultural product exports on the environment and increase farmers’ awareness about the environmental consequences of agricultural activities. A better understanding of the environmental impacts of agricultural exports from developing countries is highly recommended.