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Comparison of the Environmental Impacts of Trade and Domestic Distortions in the United States

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  • Creason, Jared
  • Fisher, Michael
  • Morin, Isabelle
  • Stone, Susan F.

Abstract

There is a great deal of concern, both among environmental activists and the general public, about the affects of globalization on the environment. One particularly contentious issue is that of trade liberalization. However, is all the concern being shown for the effect of increased trade on the environment misplaced? Should we instead be focusing our efforts on the distortions created by domestic policies as a greater source of potentially adverse environmental effects? This paper compares the environmental impacts of different types of subsidies/restrictions on the US economy. The paper presents the results of several scenarios surrounding the removal of two types of restrictions: trade and domestic subsidies. The Global Trade Analysis Project (GTAP) model and database will be used to derive economic changes while the environmental effects will be assessed using the Trade and Environment Assessment Model (TEAM). TEAM converts national level economic outcomes into environmental. Aggregate measures of pollution indicate greater increases in the US from trade liberalization, mostly through changes in the agricultural sector.

Suggested Citation

  • Creason, Jared & Fisher, Michael & Morin, Isabelle & Stone, Susan F., 2005. "Comparison of the Environmental Impacts of Trade and Domestic Distortions in the United States," National Center for Environmental Economics-NCEE Working Papers 280843, United States Environmental Protection Agency (EPA).
    • Handle: RePEc:ags:nceewp:280843
    DOI: 10.22004/ag.econ.280843
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    References listed on IDEAS

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    1. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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