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

Author

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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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    Cited by:

    1. Beghin, John C. & Dessus, Sebastien & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "Growth, Trade, and the Environment Nexus in Chile: A Comprehensive Assessment," Staff General Research Papers Archive 4091, Iowa State University, Department of Economics.
    2. 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'économique de l'École de gestion à l'Université de Sherbrooke.
    3. 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.
    4. ADKINS Liwayway G. & GARBACCIO Richard F., 2010. "Simulating the Effects of the FTAA on Global Carbon Emissions: A General Equilibrium Analysis," EcoMod2003 330700000, EcoMod.
    5. Toma, Luiza & Mathijs, Erik & Revoredo-Giha, Cesar, 2006. "Linkages between Agriculture, Trade and the Environment in the Context of the European Union Accession," Working Papers 45991, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    6. Filho, Joaquim Bento de Souza Ferreira & Horridge, Mark, 2005. "The Doha Round, poverty, and regional inequality in Brazil," Policy Research Working Paper Series 3701, The World Bank.
    7. Partnership for Market Readiness, 2021. "Beyond Mitigation," World Bank Publications - Reports 35624, The World Bank Group.

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