Harmful Environmental Impacts of Agricultural Subsidies

24 December 2022. Harmful Environmental Impacts of Agricultural Subsidies by IFPRI

Agricultural subsidies are high—and increasing—and are largely concentrated among relatively few commodities in a handful of countries. The negative impacts of these subsidies on production and trade are widely known, but their environmental impacts are less well understood.

In a recent review of the literature on agricultural subsidies, the Institute for International Trade identified key areas where further analysis is needed to strengthen the evidence base for subsidy reform. The study confirmed that many subsidies rely on environmentally harmful policy instruments, with few constraints on these expenditures.

The International Food Policy Research Institute (IFPRI) has analyzed the impacts of removing agricultural support on various indicators measuring food security, nutrition, and climate outcomes, finding that removing support may have important adverse trade-offs.

• Ken Ash, Visiting Fellow, Institute for International Trade (IIT), The University of Adelaide
• David Laborde, Senior Research Fellow, IFPRI (Presentation)
• Lee Ann Jackson, Head of Division, Agro-food Trade and Markets, Organisation for Economic Co-operation and Development (OECD)
• Sophia Murphy, Executive Director, Institute for Agriculture and Trade Policy (IATP)
• Joseph Glauber, Senior Research Fellow, IFPRI
• Nelson Illescas, Director, INAI Foundation (Fundación INAI)