Trade and the Environment in General Equilibrium

by Beghin, John C.; Roland-Holst, David W.; Van Der Mensbrugghe, Dominique

• ISBN13: 9781402004797
• ISBN10: 1402004796
• Format: Hardcover
• Copyright: 2002-02-01
• Publisher: Kluwer Academic Pub

Summary

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.

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
Globalisation and the Environment from a Development Perspective
John Beghin
David Roland-Holst
Dominique van der Mensbrugghe
Introduction	3	(2)
Findings from Our Case Studies	5	(7)
Chile	5	(1)
Costa Rica	6	(1)
China	7	(2)
Indonesia	9	(1)
Mexico	9	(2)
Morocco	11	(1)
Vietnam	12	(1)
Conclusions	12	(5)
References	15	(2)
Trade and Environmental Policy Instruments and Reforms
John Beghin
Introduction	17	(1)
Non-technical Description of Results for a Small, Open, Distorted Economy	18	(6)
Policy Reform to Address Pollution	20	(2)
Coordinated Trade and Pollution Reforms	22	(1)
Extensions of the Results	23	(1)
Should Environmental Policies Be Harmonised?	24	(1)
Policy Scenarios Considered in the Case Studies	24	(1)
Feasible Environmental Policy in Developing Economies	25	(2)
Concluding Remarks	27	(4)
Notes	29	(1)
References	30	(1)
Empirical Modelling of Trade and the Environment
John Beghin
Sebastien Dessus
David Roland-Holst
Dominique van der Mensbrugghe
Introduction	31	(1)
Overview of the Model	32	(2)
Production	32	(1)
Consumption and Closure Rule	32	(1)
Foreign Trade	33	(1)
Dynamic Features and Calibration	33	(1)
Model Description	34	(33)
Production	34	(5)
Income Distribution	39	(2)
Household Consumption and Savings	41	(2)
Other Final Demands	43	(2)
Government Revenues and Saving	45	(2)
Trade, Domestic Supply, and Demand	47	(5)
Equilibrium Conditions	52	(1)
Determination of Vintage Output and Capital Market Equilibrium	53	(3)
Macro Closure	56	(1)
Dynamics	57	(4)
Emissions	61	(3)
Country-Specific Details	64	(3)
Concluding Remarks	67	(12)
Notes	69	(2)
Appendix A-Figures	71	(6)
Appendix B-The CES/CET Functions	77	(1)
References	78	(1)
Input-Based Pollution Estimates for Environmental Assessment in Developing Countries
Sebastien Dessus
David Roland-Holst
Dominique van der Mensbrugghe
Introduction	79	(1)
Data and Estimation Methods	80	(4)
Results	84	(8)
Total Toxic Pollution	84	(2)
Bio-accumulative Toxic Pollution	86	(1)
Other Air Pollutants	87	(3)
Other Water Pollutants	90	(1)
Implementation of the Results for Other Countries	90	(2)
Some Comparative Estimates	92	(12)
Conclusions and Extensions	104	(5)
Notes	106	(1)
References	107	(2)
Modelling Health Impacts of Air Pollution and Their Valuation: An Application to Santiago, Chile
Brad Bowland
John Beghin
Introduction	109	(2)
Air Pollution Emissions	111	(3)
Total Suspended Particulates	111	(1)
Sulphur Dioxide	112	(1)
Nitrogen Dioxide	113	(1)
Carbon Monoxide	113	(1)
Volatile Organic Compounds	113	(1)
Lead	114	(1)
Dispersion	114	(2)
Estimation of Health Endpoints	116	(4)
Valuation of Health Impacts	120	(9)
Morbidity	120	(2)
Mortality	122	(7)
An Application to Health Damage in Santiago Induced by Policy Reforms	129	(3)
Concluding Comments	132	(7)
Notes	134	(1)
References	135	(4)
PART B: CASE STUDIES
Growth, Trade, and the Environment Nexus in Chile: A Comprehensive Assessment
John Beghin
Brad Bowland
Sebastien Dessus
David Roland-Holst
Dominique van der Mensbrugghe
Introduction	139	(2)
The TEQUILA Model for the Chilean Study	141	(2)
Policy Reform Scenarios	143	(2)
Results from Policy Reform Simulations	145	(14)
Effluent Taxes	145	(5)
Trade Integration	150	(4)
Coordinated Trade Integration and Environmental Protection	154	(5)
Conclusions	159	(8)
Notes	164	(1)
References	165	(2)
Trade Liberalisation and the Environment in China
Sebastien Dessus
Amani El Obeid
Dominique van der Mensbrugghe
Introduction	167	(3)
Model Modification for China	170	(1)
Simulation Scenarios	171	(1)
Results	172	(11)
Concluding Remarks	183	(4)
Notes	185	(1)
References	186	(1)
Coordinated Trade and Environmental Policies for Morocco
David Roland-Holst
Maurizio Bussolo
Introduction	187	(1)
Economic Activity and the Environment in Morocco	188	(4)
The Macroeconomic Reform Scenario	192	(3)
Growth and Emissions	193	(2)
Trade and Environmental Policy Scenarios	195	(10)
Liberalised Trade with the European Community	196	(5)
Environmental Policies	201	(1)
Combined Environmental and Commercial Policies	202	(3)
Conclusions	205	(4)
Notes	207	(1)
References	208	(1)
Outward Orientation, Growth, and the Environment in Vietnam
Amani El Obeid
Dominique van der Mensbrugghe
Sebastien Dessus
Introduction	209	(2)
Vietnam's Economic and Environmental Conditions	210	(1)
Simulation Scenarios	211	(2)
Simulation Results	213	(11)
Environmental Taxes	213	(3)
Trade Liberalisation	216	(5)
Coordinated Policy Reforms	221	(3)
Concluding Remarks	224	(9)
Notes	230	(1)
References	231	(2)
Synthesis of Case Studies on Indonesia, Mexico, and Costa Rica
Amani El Obeid
Introduction	233	(1)
The Studies	233	(2)
Findings	235	(11)
Trade Integration	235	(5)
Environmental Policy	240	(4)
Coordinated Trade Integration and Environmental Policies	244	(2)
Implications and Conclusion	246	(5)
Notes	248	(1)
Appendix A-List of Industries and Pollutants	249	(1)
References	250	(1)
Conclusions
John Beghin
David Roland-Holst
Dominique van der Mensbrugghe
Introduction	251	(1)
Guidelines from Analytical Results	251	(1)
Methodological Contributions	252	(1)
Common Stylised Facts	253	(1)
Country-Specific Findings	254	(1)
Future Research Directions	255	(4)
Notes	257	(1)
References	258	(1)
Index	259