Trade, sustainability and environmental linkages in Finnish dairy production

What are the environmental and climate impacts of dairy production? Is there a link between certain production practices and specific environmental outcomes? (connection with WP3 T.3.3 system-dynamics modelling) How can Finnish dairy products compete if the EU redesigns trade agreements in a way that environmental externalities of dairy production are accounted for (connection with WP3 T.3.3 GTAP and T3.4)

The case study explores the potential effects of redesigned EU trade regimes on Finnish agriculture, namely the dairy sector. The research will incorporate Environmental-Economic Accounting with economic modelling, in the form of input-output modelling and social accounting matrices (SAM). This allows for the quantification of environmental and climate impacts, and the potential for calculating environmental-economic indicators. The input-output models and SAMs will be utilized in CGE modelling which in return grants the possibility to look at both the upstream and downstream effects of new trade regimes for the dairy value chain.

Common Agricultural Policy (CAP) and EU trade agreements/regimes.

Rural, agricultural, and environmental policies; carbon border adjustment mechanism (CBAM).

Quantification of environmental and climate impacts: how would it affect the competitiveness of Finnish dairy production (connection with WP3 T3.4).

System of Environmental-Economic Accounting for Agriculture, Forestry and Fisheries (SEEA AFF), environmentally extended input-output model and SAM (social accounting matrix), multiplier analysis. Data collection for WP3 T.3.3 system dynamics and CGE models. T3.4 analysis led by and implemented in cooperation with CRPA.

Secondary data from Statistics Finland, Finnish Natural Resources Institute and previous Finnish research, GTAP database.

Assessment of the potential environmental and climate impact in the case of a redesign of EU trade agreements. The related insights could help to reduce the environmental externalities of dairy production. The related analysis can inform discussions about the potential role of a more localised (Finnish and EU) production.