ABSTRACT
This paper provides a framework for the evaluation of trade policies that explicitly considers the effects of such policies on the environmental resources (biomass). In doing this we estimate the effects of biomass as a factor of agricultural production and test the hypothesis that farmers efficiently exploit biomass, a resource held in common property. The main findings are: (i) biomass is an important factor of production in Ghanian agriculture; (ii) the biomass resource is exploited beyond the socially optimal level; (iii) a deepening of trade liberalization is likely to induce further losses of biomass and deforesta-tion; and (iv) national income is likely to fall in response to further trade liberalization. © 1997 Elsevier Science B.V. JEL classification: 013
