The US subsidizes crops including corn, soy, wheat, cotton, and sugar, resulting in mono-cropping, overproduction, and an increased use of inputs (water, fertilizer, pesticides), all of which are detrimental to the environment.
The following citation contains a fantastic article about the history of government subsidies and their impact on the environment and the world’s economy.
Agriculture is definitely the primary culprit here. For a variety of reasons, farmers are an absurdly powerful lobby group in the vast majority of major world powers, and protectionist policies like the ones mfurlong described are a common culprit. Rice in Japan is a particularly interesting one.
You can also argue that the way foreign aid is dealt out negatively affects the environment through the construction of additional coal plants and other hallmarks of industrialization.
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