Pesticide tax and agricultural trade : What has the effect been for Denmark?
Sammanfattning: Environmental regulations’ effect on trade have been widely studied in these last couple of decades where the analysis generally has been focused on broad regulations and overall trade. In this thesis I take a more narrow approach and study the effect of the Danish pesticide tax on Denmark’s trade of certain agricultural products. I do so by using OLS on a modified gravity model to analyze Denmark’s net exports to 11 fellow Northern European countries of 5 groups of agricultural products. The results indicate that the tax has not had any significant, unambiguous effect on trade. There is further no indication that the tax has had a larger impact on product groups that use more, and more expensive, pesticides. There are some tenuous results indicating that the tax might have had a more significant and more negative impact on Denmark’s net export to countries who introduced a pesticide tax earlier than them.
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