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General Equilibrium Modelling of Trade and the Environment

Listed author(s):
  • John Beghin
  • Sébastien Dessus
  • David Roland-Holst
  • Dominique van der Mensbrugghe

The environmental impacts of economic activity have become an increasingly urgent concern in both OECD Member countries, as well as in non-Member countries. Research in this area is still in its infancy, and the data required to buttress analytical studies is still sparse. This paper describes the base model specification for a series of six country case studies undertaken at the OECD Development Centre to analyse the links between growth and emissions, and emissions and trade instruments. The model attempts to capture some of the key features relating to environmental emissions. These features include: a) linking emissions to the consumption of polluting inputs (as opposed to output); b) including emissions generated by final demand consumption; c) integrating substitutability between polluting and non-polluting inputs (including capital and labour); d) capturing important dynamic effects such as capital accumulation, population growth, productivity and technological ... L’intérêt porté aux conséquences de l’activité économique sur l’environnement s’est considérablement accru, aussi bien dans les pays Membres de l’OCDE que dans les pays non membres. La recherche dans ce domaine est encore balbutiante, et les données nécessaires à l’analyse empirique encore trop rares. Ce document décrit les spécifications du modèle utilisé pour les six études de cas entreprises au Centre de Développement de l’OCDE, afin d’étudier d’une part les liens entre la croissance et la pollution et, d’autre part, les liens entre la pollution et les politiques commerciales. Le modèle tend à décrire plusieurs phénomènes clés de la relation entre environnement et activité économique. Ainsi, le modèle a) relie les émissions de pollution à la consommation de produits polluants (et non à la production) ; b) inclut les émissions provenant de la demande finale ; c) intègre une possibilité de substitution entre intrants polluants et non polluants (comme le capital ou le travail) ; d) ...

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Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 116.

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Date of creation: 01 Sep 1996
Handle: RePEc:oec:devaaa:116-en
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