A CGE framework to evaluate policy options for reducing air pollution emissions in Chile
AbstractSuccessful economic growth in Chile based on open market and export strategy, is characterized by a high dependence on natural resources, and by polluting production and consumption patterns. There is an increasing concern about the need to make potentially significant trade-offs between economic growth and environmental improvements. Additionally, policy makers have been reluctant to impose standards that could have regressive consequences, making the poor poorer. Using the CGE model ECOGEM-Chile we study the direct and indirect effects of imposing environmental taxes in Chile for PM-10 as well as taxes on fuels. We analyze the effects over macroeconomic variables as well as sectoral, distributive, and environmental variables. The results show that the most significant impacts are on emissions and sectoral outputs. There are winners and losers. Macroeconomic and distributional impacts are low when low emission reductions are required, however they can be significant if a 50% reduction in emissions are imposed.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Environment and Development Economics.
Volume (Year): 8 (2003)
Issue (Month): 02 (May)
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- O'Ryan, Raúl & de Miguel, Carlos J. & Miller, Sebastian & Munasinghe, Mohan, 2005. "Computable general equilibrium model analysis of economywide cross effects of social and environmental policies in Chile," Ecological Economics, Elsevier, vol. 54(4), pages 447-472, September.
- Ra�l 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.
- Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2009. "Distributional impact of developed countries CC policies on Senegal : A macro-micro CGE application," Cahiers de recherche 09-11, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, Open Access Journal, vol. 5(6), pages 2727-2750, June.
- Raúl O’Ryan, 2006. "Factors that determine the cost-effectiveness ranking of second-best instruments for environmental regulation," Journal of Regulatory Economics, Springer, vol. 30(2), pages 179-198, 08.
- Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Intra-Country Distributional Impact of Policies to Fight Climate Change: A Survey," Working Papers ECARES 2008_038, ULB -- Universite Libre de Bruxelles.
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