Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Published Version

Publication Date

2002

Journal or Book Title

Environment and Development Economics

Volume

7

First Page or Article ID Number

214

Last Page

267

DOI

10.1017/S1355770X02000165

Abstract

We use an empirical simulation model to examine links between trade integration, pollution, and public health in Chile. We synthesize economic, engineering, and health data to elucidate this complex relationship and support more coherent policy. Trade integration scenarios examined include Chile's accession to the NAFTA, MERCOSUR, and unilateral opening to world markets. The latter scenario induces substantial worsening of pollution, partly because it facilitates access to cheaper and dirty energy, and has a significant negative effect on urban morbidity and mortality. Damages caused by rising morbidity and mortality are of similar magnitude and substantial. Emissions of small particulates, SO2, and NO2, have the strongest impact on local mortality and morbidity. These three pollutants appear to be complementary in economic activity. Unilateral trade integration combined with a tax on small particulates brings welfare gains, which are 16 per cent higher than those obtained under unilateral trade reform alone.

Comments

This is an article from Environment and Development Economics 7 (2002): 241, doi:10.1017/S1355770X02000165. Posted with permission.

Copyright Owner

Cambridge University Press

Language

en

File Format

application/pdf

Working Paper

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