Trade and the Environment in General Equilibrium: Evidence from Developing Economies
This book was initiated while the three major authors were at the Development Centre of Organisation for Economic Cooperation and Development (OECD) in Paris, working on its program on economic growth, trade, and sustainability. We wish to thank the OECD
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Economy & Environment VOLUME 21
Scientific Advisory Board Scott Barrett, School of Advanced International Studies, Johns Hopkins University, Washington DC, U.S.A. Klaus Conrad, University of Mannheim, Mannheim, Germany David James, Ecoservices Pty. Ltd., Whale Beach, New South Wales, Australia Bengt J. Kriström, University of Umea, Sweden Raymond Prince, Congressional Budget Office, U.S. Congress, Washington DC, U.S.A Domenico Siniscalco, ENI- Enrico Mattei, Milano, Italy / University of Torino, Italy
Trade and the Environment in General Equilibrium: Evidence from Developing Economies Edited by
John Beghin Iowa State University, Ames, Iowa, U.S.A.
David Roland-Holst Mills College, Oakland, California, U.S.A.
and
Dominique Van der Mensbrugghe The World Bank, Washington, D.C., U.S.A.
KLUWER ACADEMIC PUBLISHERS NEW YORK, BOSTON, DORDRECHT, LONDON, MOSCOW
eBook ISBN: Print ISBN:
0-306-47672-X 1-4020-0479-6
©2002 Kluwer Academic Publishers New York, Boston, Dordrecht, London, Moscow Print ©2002 Kluwer Academic Publishers Dordrecht All rights reserved No part of this eBook may be reproduced or transmitted in any form or by any means, electronic, mechanical, recording, or otherwise, without written consent from the Publisher Created in the United States of America Visit Kluwer Online at: and Kluwer's eBookstore at:
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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 John Beghin, David Roland-Holst, and Dominique van der Mensbrugghe 1. Introduction 2. Findings from Our Case Studies Chile Costa Rica China Indonesia Mexico Morocco Vietnam 3. Conclusions References Chapter 2. TRADE AND ENVIRONMENTAL POLICY INSTRUMENTS
AND
3 5 5 6 7 9 9 11 12 12 15
REFORMS
John Beghin 1. Introduction 2. Non-technical Description of Results for a Small, Open, Distorted Economy Policy Reform to Address Pollution Coordinated Trade and Pollution Reforms Extensions of the Results 3. Should Environmental Policies Be Harmonised? 4. Policy Scenarios Considered in the Case Studies 5. Feasible Environmental Policy in Developing Economies 6. Concluding Remarks Notes References
v
17 18 20 22 23 24 24 25 27 29 30
Chapter 3. EMPIRICAL MODELLING OF TRADE AND THE ENVIRONMENT John Beghin, Sébastien Dessus, David Roland-Holst, and Dominique van der Mensbrugghe 1. Introduction 2. Overview of the Model Production Consumption and Closure Rule Foreign Trade Dynamic Features and Calibration 3. Model Description Production Income Distribution Household Consumption and Savings Other Final Demands Government Revenues and Saving Trade, Domestic Supply, and Demand Equilibrium Conditions Determination of Vintage Output and Capital Market Equilibrium Macro Closure Dynamics Emissions Country-Specific Details 4. Concluding Remarks Notes Appendix A – Figures Appendix B – The CES/CET Functions References
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