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Trade reform and environmental externalities in general equilibrium: analysis for an archetype poor tropical country

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Author Info
L PEZ, RAM N
Abstract

This paper provides a conceptual and empirical general equilibrium framework for the analysis of the impact of trade reform on welfare and the environment. The analysis is applied to C te d Ivoire explicitly considering externalities affecting biomass (natural vegetation), which is shown to be an important factor determining agricultural productivity.The simulation general equilibrium analysis shows that the agricultural output composition effect dominates the agricultural expansion effect for the case of complete trade liberalization. Thus, in this case trade liberalization causes a significant improvement in the rural biomass stock by cutting land area cultivated, increases agricultural productivity, and induces dramatic welfare gains. That is, trade liberalization is a win win type of policy in this case. However, partial trade liberalization that only reduces protection to non-agricultural goods (and does not reduce tariffs to agricultural import substitutes and does not reduce export taxes) causes a further deterioration of the biomass resources and reduces welfare.

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Publisher Info
Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 5 (2000)
Issue (Month): 04 (October)
Pages: 377-404
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:cup:endeec:v:5:y:2000:i:04:p:377-404_00

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  1. Bardhan, Pranab, 2005. "Globalization and Rural Poverty," Working Papers RP2005/30, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  2. Toman, Michael, 2003. "The Roles of the Environment and Natural Resources in Economic Growth Analysis," Discussion Papers dp-02-71, Resources For the Future. [Downloadable!]
  3. Toma, Luiza & Ashworth, Cheryl J. & Stott, Alistair, 2008. "A Partial Equilibrium Model Of The Linkages Between Animal Welfare, Trade And The Environment In Scotland," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44825, European Association of Agricultural Economists. [Downloadable!]
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This page was last updated on 2009-11-25.

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