ACE Seminars

Speaker Keliang Xiao - Trade Policy and the Emissions Content of Agricultural Trade

Event Type
Seminar/Symposium
Sponsor
pERE (Program in Environmental and Resource Economics) - Job Market Paper
Location
428 Mumford Hall
Virtual
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Date
Oct 27, 2025   12:00 - 1:00 pm  
Speaker
Keliang Xiao, PhD Student, Dept ACE, University of Illinois
Views
43

Abstract 
Agriculture's role in the generation of greenhouse gases (GHGs) has come under increasing scrutiny. Simultaneously, global agricultural production and trade continue to rise due to ever-growing demand and persistent reductions in trade barriers. We investigate the implications of agricultural trade liberalization for global farm-gate GHG emissions embodied in traded agricultural commodities. To do this, we employ a structural gravity estimation and simulation framework to quantify the counterfactual impacts of tariff preferences on global trade flows, and the embodied emissions content of these flows, for a selection of prominent agricultural commodities. We document that tariff preferences have led to a global increase in trade-embodied emissions of nitrous oxides (N2O) and methane (CH4), two major greenhouse gases of 31.66 and 1053.91 kilotons, respectively---a CO2-equivalent increase of 37.90 megatons equaling 120.52% of global farm-gate GHG emissions from agriculture. Our findings underscore the critical need to balance trade policy with climate and environmental considerations.

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