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International Trade, Environment and Market Imperfection: A Computable General Equilibrium Analysis for India

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  • Koushik Das
  • Pinaki Chakraborti

Abstract

The purpose of this article is to understand general equilibrium impacts of international trade and globalization on social welfare and environmental emission caused on account of energy consumption by industries and households. We applied Computable General Equilibrium (CGE) modelling as the relevant methodology following Shoven and Whalley (1984). By constructing an energy/environmental Social Accounting Matrix (SAM), this article attempts to measure the effects of trade liberalization on different macroeconomic variables, energy consumption and green house gas (GHG) emission. We simulate various trade related policies like import liberalization, foreign capital inflow and use of energy saving technologies under both perfect and monopolistic competition.

Suggested Citation

  • Koushik Das & Pinaki Chakraborti, 2012. "International Trade, Environment and Market Imperfection: A Computable General Equilibrium Analysis for India," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(2), pages 157-190, December.
    • Handle: RePEc:sae:smppub:v:1:y:2012:i:2:p:157-190
    DOI: 10.1177/2277978712473397
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    References listed on IDEAS

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