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Trade integration, environmental degradation, and public health in Chile: assessing the linkages

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Author Info
Beghin, John C.
Bowland, Bradley J.
Dessus, S bastien
Roland-Holst, David
Mensbrugghe, Dominique van der

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Abstract

We use an empirical simulation model to examine links between trade integration, pollution, and public health in Chile. We synthesize economic, engineering, and health data to elucidate this complex relationship and support more coherent policy. Trade integration scenarios examined include Chile s accession to the NAFTA, MERCOSUR, and unilateral opening to world markets. The latter scenario induces substantial worsening of pollution, partly because it facilitates access to cheaper and dirty energy, and has a significant negative effect on urban morbidity and mortality. Damages caused by rising morbidity and mortality are of similar magnitude and substantial. Emissions of small particulates, SO2, and NO2, have the strongest impact on local mortality and morbidity. These three pollutants appear to be complementary in economic activity. Unilateral trade integration combined with a tax on small particulates brings welfare gains, which are 16 per cent higher than those obtained under unilateral trade reform alone.

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

Volume (Year): 7 (2002)
Issue (Month): 02 (May)
Pages: 241-267
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Handle: RePEc:cup:endeec:v:7:y:2002:i:02:p:241-267_00

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lee, Hiro & Roland-Holst, David, 1997. "The environment and welfare implications of trade and tax policy," Journal of Development Economics, Elsevier, vol. 52(1), pages 65-82, February. [Downloadable!] (restricted)
  2. John Whalley, 1996. "Trade and Environment Beyond Singapore," NBER Working Papers 5768, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Beghin, John C. & Roland-Holst, D. & Mensbrugghe, D. van der, 1999. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers 1589, Iowa State University, Department of Economics.
  4. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1997. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 442-55, May. [Downloadable!] (restricted)
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  5. Ostr, Bart & Sanchez, Jose Miguel & Aranda, Carlos & Eskeland, Gunnar S., 1995. "Air pollution and mortality : results from Santiago, Chile," Policy Research Working Paper Series 1453, The World Bank. [Downloadable!]
  6. Beghin, John C. & Roland-Holst, D. & Mensbrugghe, D. van der, 1999. "Trade Liberalization and the Environment in the Pacific Basin: Coordinated Approaches to Mexican Trade and Environment Policy," Staff General Research Papers 1588, Iowa State University, Department of Economics.
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  7. Copeland, Brian R & Taylor, M Scott, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 755-87, August. [Downloadable!] (restricted)
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  8. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January. [Downloadable!] (restricted)
  9. Eskeland, Gunnar S. & Harrison, Ann E., 1997. "Moving to greener pastures : multinationals and the pollution-haven hypothesis," Policy Research Working Paper Series 1744, The World Bank. [Downloadable!]
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  10. Dessus, Sebastien & Bussolo, Maurizio, 1998. "Is There a Trade-off Between Trade Liberalization and Pollution Abatement?: A Computable General Equilibrium Assessment Applied to Costa Rica," Journal of Policy Modeling, Elsevier, vol. 20(1), pages 11-31, February. [Downloadable!] (restricted)
  11. Bovenberg, A Lans & Goulder, Lawrence H, 1996. "Optimal Environmental Taxation in the Presence of Other Taxes: General-Equilibrium Analyses," American Economic Review, American Economic Association, vol. 86(4), pages 985-1000, September. [Downloadable!] (restricted)
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  12. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer, vol. 2(2), pages 157-183, August. [Downloadable!] (restricted)
  13. Grossman, Gene & Krueger, Alan B, 1992. "Environmental Impacts of a North American Free Trade Agreement," CEPR Discussion Papers 644, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Raúl O'Ryan & Carlos J. de Miguel & Sebastian Miller, 2005. "A Cge Model for Environmental and Trade Policy Analysis in Chile: Case Study for Fuel Tax Increases," Documentos de Trabajo 211, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  2. Raúl O’Ryan & Carlos J. de Miguel & Sebastián Miller, 2003. "The ECOGEM-Chile Model: A CGE Model for Environmental and Trade Policy Analysis," Working Papers Central Bank of Chile 247, Central Bank of Chile. [Downloadable!]
  3. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  4. David O'Connor, 2001. "Estimating Ancillary Benefits of Climate Policy Using Economy-Wide Models: Theory and Application in Developing Countries," EEPSEA Special and Technical Paper sp200111t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised Nov 2001. [Downloadable!]
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