Addressing biodiversity loss when international markets of agricultural commodities are oligopolistic

Daniel Esteban May


Recent evidence shows that international markets of agricultural commodities are oligopolistic. This article uses a theoretical framework to identify the effects of adopting either unilateral (i.e. non-cooperative) or cooperative environmental policies on local biodiversity when countries compete in this market structure. The results reveal that unilateral environmental policies can negatively affect local biodiversity in foreign countries. This suggests that protection of natural habitats can only be achieved by means of international cooperation.

Full Text:



Angelsen, A., and Kaimowitz, D. (1998) Economic models of tropical deforestation a review, Center for International Forestry Research CIFOR.

Barbier, E. (2004) Explaining agricultural land expansion and deforestation in developing countries, American Journal of Agricultural Economics, 86(5), 347-1353.

Boehlje, M., and O. Doering. (2000) Farm policy in an industrialized agriculture, Journal of Agribusiness, 18(1), 53-60.

Hueth, B., and Marcoul, P. (2006) Information sharing and oligopoly in agricultural markets: the role of the cooperative bargaining association, American Journal of Agricultural Economics, 88, 866-881.

May, D.E. (2009) An international network analysis of the environment, Asia-Pacific Journal of Accounting and Economics, 16(3), 271-284.

McCorriston, S. (2002) Why should imperfect competition matter to agricultural economists?, European Review of Agricultural Economics 29(3), 349–371.

Ming, K., and Chandramohan, D. (2002) Malaysian Palm Oil industry at crossroadsand its future direction, Oil Palm Industry Economic Journal, 2(2), 10-15.

Naidoo, R., and Adamowicz, W.L. (2005) Economic benefits of biodiversity exceed costs of conservation at an African rainforest reserve, Proceedings of the National Academy of Sciences of the United States of America 102(46), 16712-16716.

Pimentel, D., Wilson, C., McCullum, C., Huang, R., Dwen, P., Flack, J., Tran, Q., Saltman, T., and Cliff, B. (1997) Economic and environmental benefits of biodiversity, BioScience 47(11), 747-757.

Polasky, S., Costello, C., and McAusland, C. (2004) On trade, land use, and biodiversity, Journal of Environmental Economics and Management, 48, 911-925.

Reimer, J.J., and Stiegert, K.W. (2006) Imperfect competition and strategic trade theory: evidence for international food and agricultural markets, Journal of Agricultural & Food Industrial Organization 4(1), Article 6.

Smulders, S., Soest, D., and Withagen, C. (2004) International trade, species diversity, and habitat conservation, Journal of Environmental Economics and Management, 48, 891-910.



  • There are currently no refbacks.

ISSN: 2254-4380