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Abstract

In the world economy and similarly in the Slovak agriculture there are more and more discussions about sustainable development and the influence of agriculture on the environment. For definition of the optimal environmental policy as well as the effects of agriculture and of agritrade, Figure 1 was used illustrating the problems of setting up the environmental tax which expresses a difference between the marginal social cost and the marginal private cost. Figure 2 shows the influence of the state on a level of pollution through penalty P* and simultaneously by quantification of the pollution maximum level f". Figure 3 shows the optimal environmental policy and the impact of agritrade liberalization. Based on a size of impacts, it is suggested that agritrade liberalization affects the production reduction, thus declining pollution level.

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