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Trade Liberalization and Pollution: Evidence from the Philippines

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  • Cororaton, Caesar B.
  • Aldaba, Rafaelita M.

Abstract

The paper assesses the impact of trade reforms in the Philippines on pollution using CGE model simulations and two industry case studies on sugar milling and refining and cement manufacturing. Generally, trade reform is output augmenting and welfare improving. The overall impact on pollution is very small. Output taxes to reduce pollution are ineffective. They wipe out the potential gain from trade reforms. The case studies support the simulation results. Trade liberalization leads to more competition, improvements in efficiency, and increased foreign investment. All this increased environmental awareness. It accelerated the promotion and production of good environmental systems and adoption of ISO standards.

Suggested Citation

  • Cororaton, Caesar B. & Aldaba, Rafaelita M., 2001. "Trade Liberalization and Pollution: Evidence from the Philippines," Discussion Papers DP 2001-25, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2001-25
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/trade-liberalization-and-pollution-evidence-from-the-philippines
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    References listed on IDEAS

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    1. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1994. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers Archive 1589, Iowa State University, Department of Economics.
    2. John Beghin & Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1996. "General Equilibrium Modelling of Trade and the Environment," OECD Development Centre Working Papers 116, OECD Publishing.
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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.
    2. Coxhead, Ian A., 2002. "Development And The Environment In Asia: A Survey Of Recent Literature," Staff Papers 12650, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    3. Pham Thai Hung & Bui Anh Tuan & Nguyen The Chinh, 2016. "The Impact of Trade Liberalization on Industrial Pollution: Empirical Evidence from Vietnam," EEPSEA Research Report rr2016042, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.

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    Keywords

    trade and pollution;

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