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Economic Implications of International Participation Alternatives for Agricultural Greenhouse Gas Emission Mitigation

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The papar examine the competitive effects of differential mitigation efforts on agricultural food production and on international trade. In doing this we employ the assumption that the average U.S. compliance caused cost increase would also occur in other complying countries. they consider implementation 1) unilaterally by the U.S., 2) by all Kyoto Protocol Annex I countries and 3) globally. The results, which are only suggestive of the types of effects that would be observed due to the simplifying cost assumptions, indicate compliance causes supply cutbacks in regulated countries and increases in non-regulated countries. In addition, the study results show that U.S. agricultural producers are more likely to benefit from a Kyoto Protocol like environment but that consumers are likely to be hurt in terms of their agricultural welfare.