IDEAS home Printed from https://ideas.repec.org/p/edj/ceauch/211.html
   My bibliography  Save this paper

A Cge Model for Environmental and Trade Policy Analysis in Chile: Case Study for Fuel Tax Increases

Author

Listed:
  • Raúl O'Ryan

    ()

  • Carlos J. de Miguel
  • Sebastian Miller

Abstract

Computable General Equilibrium (CGE) models are a powerful economic tool for multidimensional/multi-sectoral analysis. They improve traditional input-output analysis generating quantities and prices endogenously and reflecting market incentives. They complement partial equilibrium analysis with a broader scope of analysis and the quantification of indirect and often non-intuitive effects. Environmental applications of CGE models include trade and environment, climate change, energy problems, natural resources management and environmental regulation analysis. The ECOGEM-Chile model described in this paper can be used to analyse impacts on macro, sectoral, social and environmental (air, water and land pollutants) variables of different economic, social or/and environmental policies, such as trade policies, environmental taxes, external price shocks, among others. The model incorporates the recently released 1996 input/output matrix as well as the most recent information on wages and income. In the specific application developed here, the model is used to analyse direct and indirect impacts on the Chilean economy of increasing fuel taxes by 100%. Additionally a trade policy of reducing tariffs to compensate the increase in revenues of these taxes is simulated. The tariff reductions are in line with the current Chilean trade policy. Winners and loser from both exercises are identified as well as the main determinants of the results.

Suggested Citation

  • Raúl O'Ryan & Carlos J. de Miguel & Sebastian Miller, 2005. "A Cge Model for Environmental and Trade Policy Analysis in Chile: Case Study for Fuel Tax Increases," Documentos de Trabajo 211, Centro de Economía Aplicada, Universidad de Chile.
  • Handle: RePEc:edj:ceauch:211
    as

    Download full text from publisher

    File URL: http://www.dii.uchile.cl/~cea/sitedev/cea/www/download.php?file=documentos_trabajo/ASOCFILE120051102175523.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Beghin, John C. & Bowland, Bradley J. & Dessus, S bastien & Roland-Holst, David & Mensbrugghe, Dominique van der, 2002. "Trade integration, environmental degradation, and public health in Chile: assessing the linkages," Environment and Development Economics, Cambridge University Press, vol. 7(02), pages 241-267, May.
    2. O'Ryan, Ra l & Miller, Sebastian & de Miguel, Carlos J., 2003. "A CGE framework to evaluate policy options for reducing air pollution emissions in Chile," Environment and Development Economics, Cambridge University Press, vol. 8(02), pages 285-309, May.
    3. Dasgupta, Partha & M Ler, Karl-G Ran, 1998. "Analysis, facts, and prediction," Environment and Development Economics, Cambridge University Press, vol. 3(04), pages 491-537, October.
    4. Juan Eduardo Coeymans & Felipe Larraín, 1994. "Efectos de un Acuerdo de Libre Comercio entre Chile y Estados Unidos: Un Enfoque de Equilibrio General," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 31(94), pages 357-400.
    5. Raúl O'Ryan & Carlos J. de Miguel & Sebastián Miller, 2000. "Ensayo sobre equilibrio general computable: Teoría y aplicaciones," Documentos de Trabajo 73, Centro de Economía Aplicada, Universidad de Chile.
    6. 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.
    7. Kneese, Allen V., 1998. "No time for complacency," Environment and Development Economics, Cambridge University Press, vol. 3(04), pages 491-537, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:edj:ceauch:211. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/ceuclcl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.