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GTAP Resources: Resource Display

GTAP Resource #6505

"ASSESSING THE IMPACT OF CONSERVATION POLICIES ON RURAL COMMUNITIES: THE ROLE OF LABOR MARKETS"
by Ray, Srabashi and Thomas Hertel


Abstract
Labor is a critical, but often overlooked, input in agriculture. In this paper we develop a
theoretical model to demonstrate how agricultural labor market functioning plays a
significant role in determining the impact and distributional consequences of
conservation policies. We next propose a novel approach to use the theoretical model
to explain the impacts of a groundwater conservation policy from a spatially explicit
quantitative model comprising 75,000+ grids within the US. Building on existing
literature of gridded agricultural production (Baldos et al. 2020) and local labor markets
using Commuting Zones (Fowler, Rhubart, and Jensen 2016b) we develop the
SIMPLE-G-CZ model of agricultural production and labor markets. We find that labor
market rigidities dampen the effectiveness of conservation policies. Limited labor
mobility also results in the conservation policy’s incidence being borne in greater
proportion by farm workers, with these impacts varying widely across local labor
markets.


Resource Details (Export Citation) GTAP Keywords
Category: 2022 Conference Paper
Status: Published
By/In: Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2022
Version:
Created: Ray, S. (4/10/2022)
Updated: Ray, S. (4/10/2022)
Visits: 85
- Climate impacts
- Environmental policies
- Trade and the environment
- Water
- Agricultural policies
- Labor market issues
- North America


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