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Trade and the Environment in General Equilibrium: Evidence from Developing Economies / Edition 1

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Overview

This book is a considerable step towards a better-informed debate between free-trader and environmentalist interests brought on in international trade negotiations. It presents results of an empirical investigation of the interaction between growth, international trade, and the environment in Chile, China, Costa Rica, Indonesia, Morocco, and Vietnam, using a common computable general equilibrium modelling approach.

The book meshes analytical results, methodology, and detailed empirical analysis in a comprehensive appraisal of the interface between outward-oriented growth and the environment, with particular reference to the policy challenges faced by developing countries. The latter arguably have the greatest stake in successful co-ordination of free trade and domestic environmental policies to achieve higher living standards while protecting their environment. The conjecture of inevitable growth-environment trade-off is not sustained by the analysis. The book provides reliable guidance toward constructive reconciliation of economic and environmental aspirations.

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Editorial Reviews

From the Publisher
"The book makes many important contributions and is a must-read for anyone involved in trade/environment. It should also be of interest to CGE modelers and environmental policy analysts. I encourage researchers to use the base model and the results from the book to broaden the trade/environment investigations for more countries or to refine and focus the analyses presented for the seven countries. There is plenty of work to be done. I hope that future analyses are performed with such care and completeness."
(American Journal of Agricultural Economics (November 2003)
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Product Details

  • ISBN-13: 9781402004797
  • Publisher: Springer Netherlands
  • Publication date: 2/28/2002
  • Series: Economy and Environment Series , #21
  • Edition description: 2002
  • Edition number: 1
  • Pages: 275
  • Product dimensions: 9.21 (w) x 6.14 (h) x 0.69 (d)

Table of Contents

List of Figures xi
List of Tables xi
List of Acronyms and Abbreviations xiv
List of Contributors xvi
Preface xix
Part A Methodology and Modelling
Chapter 1. Globalisation and the Environment from a Development Perspective
1. Introduction 3
2. Findings from Our Case Studies 5
Chile 5
Costa Rica 6
China 7
Indonesia 9
Mexico 9
Morocco 11
Vietnam 12
3. Conclusions 12
References 15
Chapter 2. Trade and Environmental Policy Instruments and Reforms
1. Introduction 17
2. Non-technical Description of Results for a Small, Open, Distorted Economy 18
Policy Reform to Address Pollution 20
Coordinated Trade and Pollution Reforms 22
Extensions of the Results 23
3. Should Environmental Policies Be Harmonised? 24
4. Policy Scenarios Considered in the Case Studies 24
5. Feasible Environmental Policy in Developing Economies 25
6. Concluding Remarks 27
Notes 29
References 30
Chapter 3. Empirical Modelling of Trade and the Environment
1. Introduction 31
2. Overview of the Model 32
Production 32
Consumption and Closure Rule 32
Foreign Trade 33
Dynamic Features and Calibration 33
3. Model Description 34
Production 34
Income Distribution 39
Household Consumption and Savings 41
Other Final Demands 43
Government Revenues and Saving 45
Trade, Domestic Supply, and Demand 47
Equilibrium Conditions 52
Determination of Vintage Output and Capital Market Equilibrium 53
Macro Closure 56
Dynamics 57
Emissions 61
Country-Specific Details 64
4. Concluding Remarks 67
Notes 69
Appendix A Figures 71
Appendix B The CES/CET Functions 77
References 78
Chapter 4. Input-Based Pollution Estimates for Environmental Assessment in Developing Countries
1. Introduction 79
2. Data and Estimation Methods 80
3. Results 84
Total Toxic Pollution 84
Bio-accumulative Toxic Pollution 86
Other Air Pollutants 87
Other Water Pollutants 90
Implementation of the Results for Other Countries 90
4. Some Comparative Estimates 92
5. Conclusions and Extensions 104
Notes 106
References 107
Chapter 5. Modelling Health Impacts of Air Pollution and Their Valuation: An Application to Santiago, Chile
1. Introduction 109
2. Air Pollution Emissions 111
Total Suspended Particulates 111
Sulphur Dioxide 112
Nitrogen Dioxide 113
Carbon Monoxide 113
Volatile Organic Compounds 113
Lead 114
3. Dispersion 114
4. Estimation of Health Endpoints 116
5. Valuation of Health Impacts 120
Morbidity 120
Mortality 122
6. An Application to Health Damages in Santiago Induced by Policy Reforms 129
7. Concluding Comments 132
Notes 134
References 135
Part B Case Studies
Chapter 6. Growth, Trade, and the Environment Nexus in Chile: A Comprehensive Assessment
1. Introduction 139
2. The TEQUILA Model for the Chilean Study 141
3. Policy Reform Scenarios 143
4. Results from Policy Reform Simulations 145
Effluent Taxes 145
Trade Integration 150
Coordinated Trade Integration and Environmental Protection 154
5. Conclusions 159
Notes 164
References 165
Chapter 7. Trade Liberalisation and the Environment in China
1. Introduction 167
2. Model Modification for China 170
3. Simulation Scenarios 171
4. Results 172
5. Concluding Remarks 183
Notes 185
References 186
Chapter 8. Coordinated Trade and Environmental Policies for Morocco
1. Introduction 187
2. Economic Activity and the Environment in Morocco 188
3. The Macroeconomic Reform Scenario 192
Growth and Emissions 193
4. Trade and Environmental Policy Scenarios 195
Liberalised Trade with the European Community 196
Environmental Policies 201
Combined Environmental and Commercial Policies 202
5. Conclusions 205
Notes 207
References 208
Chapter 9. Outward Orientation, Growth, and the Environment in Vietnam
1. Introduction 209
Vietnam's Economic and Environmental Conditions 210
2. Simulation Scenarios 211
3. Simulation Results 213
Environmental Taxes 213
Trade Liberalisation 216
Coordinated Policy Reforms 221
4. Concluding Remarks 224
Notes 230
References 231
Chapter 10. Synthesis of Case Studies on Indonesia, Mexico, and Costa Rica
1. Introduction 233
2. The Studies 233
3. Findings 235
Trade Integration 235
Environmental Policy 240
Coordinated Trade Integration and Environmental Policies 244
4. Implications and Conclusion 246
Notes 248
Appendix A List of Industries and Pollutants 249
References 250
Chapter 11. Conclusions
1. Introduction 251
2. Guidelines from Analytical Results 251
3. Methodological Contributions 252
4. Common Stylised Facts 253
5. Country-Specific Findings 254
6. Future Research Directions 255
Notes 257
References 258
Index 259
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