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Is there a trade-off between trade liberalization and pollution abatement? A computable general equilibrium assessment applied to Costa Rica

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UNSPECIFIED (1998) Is there a trade-off between trade liberalization and pollution abatement? A computable general equilibrium assessment applied to Costa Rica. JOURNAL OF POLICY MODELING, 20 (1). pp. 11-31. ISSN 0161-8938

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Abstract

Recent literature elucidates important link ages between trade and environment, emphasizing on the possible reconciliation between trade liberalization and emission abatement policies. Facing the lack of robustness of qualitative results shown in theoretical work, this paper attempts a quantitative assessment of the interdependencies of these policies. A recursive dynamic CGE model for Costa Rica shows that environmental taxes marginally reduce growth yet allow a sharp decrease of emissions, and that outward orientation alone promotes growth, but induces a risk of specialization in dirty activities. Free trade combined with appropriate effluent taxes enhances factor reallocation towards competitive industries, and hence growth, while significantly abating emissions. (C) 1998 Society for Policy Modeling. Published by Elsevier Science Inc.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: JOURNAL OF POLICY MODELING
Publisher: ELSEVIER SCIENCE INC
ISSN: 0161-8938
Date: February 1998
Volume: 20
Number: 1
Number of Pages: 21
Page Range: pp. 11-31
Publication Status: Published
URI: http://wrap.warwick.ac.uk/id/eprint/20123

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