IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331059.html
   My bibliography  Save this paper

Analyzing Taiwan’s Air Pollution: An Application of the CGE Model and the Concept of Green National Product

Author

Listed:
  • Chu, Yun-Peng
  • Lin, Shih-Mo
  • Kuo, Ching-Wei

Abstract

The purposes of this paper are to establish a link between the concept of green national product and that of CGE modeling, and demonstrate empirically the existence of significant differences between the value of conventional GNP and that of Green GNP. We first derive theoretically the framework of Green GNP under two different definitions, SEEA and ENRAP, taking into account pollution and pollution prevention activities. Then, we employ a 28-sector static CGE model for Taiwan to assess the effects of the policy of mandatory reduction in air pollution emission on Taiwan’s macroeconomic variables as well as sectoral resource allocation. The social accounting matrix used by the CGE model is compiled on the basis of the 1997 national income data (aggregates) and 1996 input-output data (structure). The model is then supplemented by the pollution generation coefficients, the emission coefficients and the abatement costs, which are computed from the Trial Compilation of Green National Product prepared by the Directorate-General of Budgeting, Accounting, and Statistics (DGBAS). Three kinds of air pollutants are considered: Sulfur Oxides (SOx), Nitrogen Oxides (NOx), and Volatile Organic Compounds (VOC). Simulation results generated from the model are used to compute two measures of Green National Product, the EDPII under the United Nations?SEEA system, and an alternative measure, which is derivable from maximizing the present value of future consumption stream and is closer to the ENRAP system, in addition to the conventional GNP and other macroeconomic and sectoral variables. It is found that although a more stringent air pollution control policy will raise costs and thereby reduce the conventional GNP, the Green National Product, which reflects social welfare better than the conventional GNP does, will increase by either measure. Sectorally, industries with heavier air pollution generations tend to lose resources to the other sectors, as expected.

Suggested Citation

  • Chu, Yun-Peng & Lin, Shih-Mo & Kuo, Ching-Wei, 2002. "Analyzing Taiwan’s Air Pollution: An Application of the CGE Model and the Concept of Green National Product," Conference papers 331059, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331059
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331059/files/953.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, Jing & van Leeuwen, Nico & Vo, Tri Thanh & Tyers, Rodney & Hertel, Thomas W., 1998. "Disaggregating Labor Payments By Skill Level In Gtap," Technical Papers 28722, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2011. "A North American Free Trade Agreement: Analytical Issues and a Computational Assessment," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 40, pages 557-575, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
    2. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    3. Anderson, James E. & Yotov, Yoto V., 2016. "Terms of trade and global efficiency effects of free trade agreements, 1990–2002," Journal of International Economics, Elsevier, vol. 99(C), pages 279-298.
    4. Kuster, Robert & Ellersdorfer, Ingo & Fahl, Ulrich, 2007. "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications," Climate Change Modelling and Policy Working Papers 12035, Fondazione Eni Enrico Mattei (FEEM).
    5. Robert Küster & ingo Ellersdorfer & Ulrich Fahl, 2007. "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications," Working Papers 2007.7, Fondazione Eni Enrico Mattei.
    6. Martinez-Vazquez, Jorge & Chen, Duanjie, 2001. "The impact of NAFTA and options for tax reform in Mexico," Policy Research Working Paper Series 2669, The World Bank.
    7. Paus, Eva, 1995. "Exports, economic growth and the consolidation of peace in El Salvador," World Development, Elsevier, vol. 23(12), pages 2173-2193, December.
    8. Christopher J. Neely, 1996. "The giant sucking sound: did NAFTA devour the Mexican peso?," Review, Federal Reserve Bank of St. Louis, vol. 78(Jul), pages 33-48.
    9. Jane Golley & Rod Tyers, 2011. "Contrasting Giants: Demographic Change And Economic Performance In China And India," CAMA Working Papers 2011-10, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    10. Rod Tyers & Iain Bain & Jahnvi Vedi, 2007. "The Global Economic Implications of Freer Skilled Migration," DEGIT Conference Papers c012_028, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Deardorff, Alan V. & Stern, Robert M., 2009. "Alternatives to the Doha Round," Journal of Policy Modeling, Elsevier, vol. 31(4), pages 526-539, July.
    12. M. Ayhan Kose & Guy M. Meredith & Christopher M. Towe, 2005. "How Has NAFTA Affected the Mexican Economy? Review and Evidence," Springer Books, in: Rolf J. Langhammer & Lúcio Vinhas Souza (ed.), Monetary Policy and Macroeconomic Stabilization in Latin America, pages 35-81, Springer.
    13. Robert A. Blecker, 1996. "NAFTA, the Peso Crisis, and the Contradictions of the Mexican Economic Growth Strategy," SCEPA working paper series. 1996-04, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    14. Elbehri, Aziz & MacDonald, Steve, 2003. "Transgenic Cotton and Crop Productivity: A General Equilibrium Analysis for West and Central Africa," Conference papers 331153, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Mario Larch & Yoto V. Yotov, 2016. "General Equilibrium Trade Policy Analysis with Structural Gravity," CESifo Working Paper Series 6020, CESifo.
    16. Robert K. Kaufmann & Peter Pauly & Julie Sweitzer, 1993. "The Effects of NAFTA on the Environment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 217-240.
    17. Robinson, Sherman & Thierfelder, Karen, 2002. "Trade liberalisation and regional integration: the search for large numbers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-20.
    18. Mireille Chiroleu-Assouline & Mouez Fodha, 2011. "Environmental Tax and the Distribution of Income among Heterogeneous Workers," Annals of Economics and Statistics, GENES, issue 103-104, pages 71-92.
    19. Anthony Venables, 1994. "Integration and the export behaviour of firms: Trade costs, trade volumes and welfare," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 118-132, March.
    20. Fundación para la Educación Superior y el Desarrollo (Fedesarrollo) & Instituto Venezolano de Investigaciones Científicas (IVIC) & Perú (UP) Universidad del Pacífico & Pontificia Universidad Javeriana, 2000. "El impacto sectorial del proceso de integración subregional en la Comunidad Andina: sector lácteo y sector textil," IDB Publications (Books), Inter-American Development Bank, number 7541 edited by Banco Interamericano de Desarrollo (BID), February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.