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Trade Liberalization and Pollution: Evidence from the Philippines

Author

Listed:
  • Rafaelita M. Adalba

    (Philippine Institute for Development Studies)

  • Caesar B. Cororaton

    (Philippine Institute for Development Studies)

Abstract

The study assesses the impact of trade reforms in the Philippines on pollution using computable general equilibrium (CGE) model simulations. It focuses on the manufacturing industry and its pollution effects and examines whether trade liberalization is compatible with efforts to promote environmental protection. Generally, the results of the CGE simulations showed that trade reform is output augmenting and income improving. The overall impact on pollution is very little. The overall change in the level of emission for all pollutants is very small relative to the case where there is no tariff reform program. The results of the sensitivity analysis indicate that a change in production technology is a major factor that can check the problems of pollution in the process of industrialization.

Suggested Citation

  • Rafaelita M. Adalba & Caesar B. Cororaton, 2003. "Trade Liberalization and Pollution: Evidence from the Philippines," EEPSEA Research Report rr2003053, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2003.
    • Handle: RePEc:eep:report:rr2003053
    as

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    File URL: http://www.eepsea.org/pub/rr/2002_RR7.pdf
    File Function: First version, 2003
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    Cited by:

    1. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.

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