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

Dominique Van Der Mensbrugghe, David Roland-Holst, Sébastien Dessus, John Beghin

Research output: Contribution to journalArticlepeer-review

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 incorporate 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.

Original languageEnglish (US)
Pages (from-to)87-97
Number of pages11
JournalAgricultural Economics
Volume19
Issue number1-2
DOIs
StatePublished - Sep 1 1998
Externally publishedYes

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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