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Trade Liberalization and Pollution: Evidence from the Philippines

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Author Info
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.

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File URL: http://www.idrc.ca/uploads/user-S/10527978070Fitalayout.doc
File Format: application/pdf
File Function: First version, 2003
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Publisher Info
Paper provided by Economy and Environment Program for Southeast Asia (EEPSEA) in its series EEPSEA Research Report with number rr2003053.

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Date of creation: May 2003
Date of revision: May 2003
Handle: RePEc:eep:report:rr2003053

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Related research
Keywords: Trade liberalization; pollution; CGE; Philippines;

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  1. Ian Coxhead & Sisira Jayasuriya, 2003. "Trade Liberalization, Resource Degradation And Industrial Pollution In Developing Countries: An Integrated Analysis," Department of Economics - Working Papers Series 884, The University of Melbourne. [Downloadable!]
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