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The Uruguay Round and air pollution: estimating the composition, scale and technique effects of trade liberalization

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Author Info
Matthew A. Cole, Anthony J. Rayner

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Abstract

This paper develops a methodology to estimate the environmental impact of the Uruguay Round trade agreement. The impact is estimated in terms of five air pollutants for both developed and developing countries/regions. The methodology estimates environmental Kuznets curves and uses these in conjunction with François et al.'s (1995) estimates of Uruguay Round income gains and sectoral production changes, together with sectoral pollution intensities from Hettige et al. (1994). In this manner, composition, scale and technique effects of the Uruguay Round on air pollution are estimated. The monetary cost/benefit associated with the pollution changes is also estimated. Results indicate that emissions of all five pollutants are predicted to increase in developing and transition regions as a result of the Uruguay Round, whilst in developed regions emissions of three pollutants decrease and two increase. The results also suggest that the environmental impact will be considerably greater if the Uruguay Round affects the rate of economic growth.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of International Trade & Economic Development.

Volume (Year): 9 (2000)
Issue (Month): 3 (September)
Pages: 339-354
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Handle: RePEc:taf:jitecd:v:9:y:2000:i:3:p:339-354

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Keywords: Trade Liberalization Economic Growth Industrial Composition Air Pollution;

References listed on IDEAS
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  1. de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, vol. 25(2), pages 161-175, May. [Downloadable!] (restricted)
  2. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-73, Supplemen. [Downloadable!] (restricted)
  3. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September. [Downloadable!] (restricted)
  4. 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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  5. M.A. Cole & A.J. Rayner & J.M. Bates,, . "The Environmental Impact of the Uruguay Round," Discussion Papers 97/20, University of Nottingham, CREDIT.
  6. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Matin, Kazi M., 1992. "Openness and economic performance in sub-Saharan Africa : evidence from time-series cross-country analysis," Policy Research Working Paper Series 1025, The World Bank. [Downloadable!]
  8. Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(02), pages 173-196, May. [Downloadable!]
  9. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 465-484, November. [Downloadable!]
  10. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July. [Downloadable!] (restricted)
  11. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 401-416, November. [Downloadable!]
  12. Richard T. Carson & Yongil Jeon, 1997. "The Relationship Between Air Pollution Emissions and Income: U.S. Data," University of California at San Diego, Economics Working Paper Series 97-08, Department of Economics, UC San Diego. [Downloadable!]
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  13. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May. [Downloadable!] (restricted)
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  14. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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