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Interface Between Growth, Trade, Pollution and Natural Resource Use in Chile: Evidence from an Economywide Model, The

Author

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  • Van der Mensbrugghe, Dominique
  • Roland-Holst, David
  • Dessus, Sebastien
  • Beghin, John C.

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

  • Van der Mensbrugghe, Dominique & Roland-Holst, David & Dessus, Sebastien & Beghin, John C., 1998. "Interface Between Growth, Trade, Pollution and Natural Resource Use in Chile: Evidence from an Economywide Model, The," Staff General Research Papers Archive 1481, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:1481
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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. 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, Scottish Agricultural College, Land Economy Research Group.
    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.

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