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Abstract
It is still difficult to derive general findings and conclusions from either economic theory or
empirical studies on the relationship between trade and environment. Consequently, we aim to
analyse environmental effects of agricultural trade policies in the Austrian Marchfeld region
by applying an integrated modelling framework that accounts for heterogeneity in agricultural
production and emission. Monte-Carlo simulations have been performed in order to assess the
uncertainty of model parameters and policy impacts. The model results indicate that changes
in trade policies have statistically significant but small effects on the environment in
Marchfeld. Policy makers should rather concentrate on identifying efficient domestic
environmental policies, which are in accordance with WTO trade rules.