Livestock production and the environment: Some impacts of growth and trade liberalisation

Large increases in livestock production have led to increased pressures on the natural environment in many regions of the world. In the absence of new environmental policies, these environmental problems are projected to worsen as demand for livestock products continues to grow. In this paper we investigate the linkages between growth, trade and the environment for livestock to the year 2005, including Uruguay Round trade reform. We focus on nitrate pollution from livestock sources, given projected changes in the world economy. Our analysis suggests that the aggregate environmental implications of Uruguay Round-type trade policy reform appear to be small or even positive for world livestock production. On the other hand, in the absence of improved environmental policies, the aggregate environmental impact of growth and structural economic change to 2005 is likely to be of much greater consequence to those concerned about environmental damage.