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NAFTA and Industrial Pollution: Some General Equilibrium Results

Author

Listed:
  • A. Reinert, Kenneth

    () (George Mason University)

  • W. Roland-Holst, David

    (Mills College)

Abstract

In recent years, a surge of interest in the linkages between trade and the environment has occurred in the contexts of both regional and multilateral trade agreements. In this paper, we utilize a three-country, applied equilibrium (AGE) model of the North American economy and data from the World Banks Industrial Pollution Projection System (IPPS) to simulate the industrial pollution impacts of trade liberalization under NAFTA. We find that the most serious environmental consequences of NAFTA occur in the base metals sector. In terms of magnitude, the greatest impacts are in the United States and Canada. The Mexican petroleum sector is also a significant source of industrial pollution, particularly in the case of air pollution. For specific pollutants in specific countries, the transportation equipment sector is also an important source of industrial pollution. This is the case for both volatile organic compounds and toxins released into the air in Canada and the United States. Finally, the chemical sector is a significant source of industrial toxin pollution in the United States and Mexico, but not in Canada.

Suggested Citation

  • A. Reinert, Kenneth & W. Roland-Holst, David, 2001. "NAFTA and Industrial Pollution: Some General Equilibrium Results," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 165-179.
  • Handle: RePEc:ris:integr:0159
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    Citations

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    Cited by:

    1. ADKINS Liwayway G. & GARBACCIO Richard F., "undated". "Simulating the Effects of the FTAA on Global Carbon Emissions: A General Equilibrium Analysis," EcoMod2003 330700000, EcoMod.
    2. Nemati, Mehdi & Hu, Wuyang & Reed, Michael, 2016. "Are Free Trade Agreements Good for the Environment? A Panel Data Analysis," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235631, Agricultural and Applied Economics Association.
    3. Kevin P. Gallagher & Frank Ackerman & Luke Ney, "undated". "02-01 "Economic Analysis in Environmental Reviews of Trade Agreements: Assessing the North American Experience"," GDAE Working Papers 02-01, GDAE, Tufts University.
    4. David I. Stern, 2005. "The Effect of NAFTA on Energy and Environmental Efficiency in Mexico," Rensselaer Working Papers in Economics 0511, Rensselaer Polytechnic Institute, Department of Economics.
    5. Al-Amin, Abul Quasem & Abdul Hamid, Jaafar & Chamhuri, Siwar, 2008. "Macroeconomic effects of carbon dioxide emission reduction: a computable general equilibrium analysis for Malaysia," MPRA Paper 8667, University Library of Munich, Germany.

    More about this item

    Keywords

    NAFTA; Pollution; Applied General Equilibrium;

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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