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The interface between growth, trade, pollution and natural resource use in Chile: evidence from an economy wide model

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  • Dominique van der Mensbrugghe
  • David Roland‐Holst
  • Sébastien Dessus
  • John Beghin

Abstract

We investigate the implications of trade liberalization and pollution taxes on aggregate income, pollution, and natural resource use in Chile with a neoclassical economywide model comprising 75 sectors. The model incorporates 13 measures of pollution effluents which are linked to the use of polluting inputs and energy use. We estimate the economic and environmental impact of Chile's participation in NAFTA, MERCOSUR, of unilateral trade liberalization and effluent taxes. Unilateral trade liberalization induces substantial worsening of pollution emissions and expansion of resource‐based sectors, partly because of access to cheaper energy. NAFTA integration is environmentally benign in terms of pollution emissions.

Suggested Citation

  • Dominique van der Mensbrugghe & David Roland‐Holst & Sébastien Dessus & John Beghin, 1998. "The interface between growth, trade, pollution and natural resource use in Chile: evidence from an economy wide model," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 87-97, September.
  • Handle: RePEc:bla:agecon:v:19:y:1998:i:1-2:p:87-97
    DOI: 10.1111/j.1574-0862.1998.tb00518.x
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    References listed on IDEAS

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    1. John Beghin & Michel Potier, 1997. "Effects of Trade Liberalisation on the Environment in the Manufacturing Sector," The World Economy, Wiley Blackwell, vol. 20(4), pages 435-456, July.
    2. Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Input-Based Pollution Estimates for Environmental Assessment in Developing Countries," OECD Development Centre Working Papers 101, OECD Publishing.
    3. John Beghin & David Roland-Holts & Dominique van der Mensbrugghe, 1995. "Trade Liberalization and the Environment in the Pacific Basin: Coordinated Approaches to Mexican Trade and Environment Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 778-785.
    4. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
    5. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1997. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 442-455, May.
    6. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    7. Beghin, John C. & Dessus, Sebastien & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1997. "Impact of Free Trade and Pollution Taxes on Mexican Agriculture. A General Equilibrium Analysis, The," Staff General Research Papers Archive 1482, Iowa State University, Department of Economics.
    8. 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.
    9. Low, P., 1992. "International Trade and the Environment," World Bank - Discussion Papers 159, World Bank.
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    Cited by:

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    3. Jie He & David Roland-Holst, 2010. "Economic Growth, Energy demand and Atmospheric Pollution: Challenges and Opportunities for China in the future 30 years," Cahiers de recherche 10-11, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    4. He, Jie, 2005. "Estimating the economic cost of China's new desulfur policy during her gradual accession to WTO: The case of industrial SO2 emission," China Economic Review, Elsevier, vol. 16(4), pages 364-402.

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