Interface Between Growth, Trade, Pollution and Natural Resource Use in Chile: Evidence from an Economywide Model, The
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.
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|Date of creation:||01 Sep 1998|
|Date of revision:|
|Publication status:||Published in Agricultural Economics, September 1998, vol. 19 no. 1-2, pp. 87-97|
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