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The interface between growth, trade, pollution and natural resource use in Chile: evidence from an economywide model

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  • van der Mensbrugghe, Dominique
  • Roland-Holst, David
  • Dessus, Sebastien
  • Beghin, John

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.
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  • van der Mensbrugghe, Dominique & Roland-Holst, David & Dessus, Sebastien & Beghin, John, 1998. "The interface between growth, trade, pollution and natural resource use in Chile: evidence from an economywide model," Agricultural Economics, Blackwell, vol. 19(1-2), pages 87-97, September.
    • Handle: RePEc:eee:agecon:v:19:y:1998:i:1-2:p:87-97
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    1. John Beghin & Michel Potier, 1997. "Effects of Trade Liberalisation on the Environment in the Manufacturing Sector," The World Economy, Wiley Blackwell, vol. 20(4), pages 435-456, July.
    2. Beghin, John C. & Dessus, Sebastien & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1997. "Impact of Free Trade and Pollution Taxes on Mexican Agriculture. A General Equilibrium Analysis, The," Staff General Research Papers Archive 1482, Iowa State University, Department of Economics.
    3. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1994. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers Archive 1589, Iowa State University, Department of Economics.
    4. John Beghin & David Roland-Holts & Dominique van der Mensbrugghe, 1995. "Trade Liberalization and the Environment in the Pacific Basin: Coordinated Approaches to Mexican Trade and Environment Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 778-785.
    5. Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Input-Based Pollution Estimates for Environmental Assessment in Developing Countries," OECD Development Centre Working Papers 101, OECD Publishing.
    6. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 755-787.
    7. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1997. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 442-455, May.
    8. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    9. Low, P., 1992. "International Trade and the Environment," World Bank - Discussion Papers 159, World Bank.
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    1. Beghin, John C. & Dessus, Sebastien & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "Growth, Trade, and the Environment Nexus in Chile: A Comprehensive Assessment," Staff General Research Papers Archive 4091, Iowa State University, Department of Economics.
    2. Jie He & David Roland-Holst, 2010. "Economic Growth, Energy demand and Atmospheric Pollution: Challenges and Opportunities for China in the future 30 years," Cahiers de recherche 10-11, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    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.
    4. ADKINS Liwayway G. & GARBACCIO Richard F., 2010. "Simulating the Effects of the FTAA on Global Carbon Emissions: A General Equilibrium Analysis," EcoMod2003 330700000, EcoMod.
    5. 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, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    6. Ferreira FIlho, Joaquim Bento de Souza & Horridge, Mark, 2005. "The Doha Round, Poverty and Regional Inequality in Brazil," Conference papers 331332, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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