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- W1590620592 abstract "This paper uses an empirical simulation model to examine links between trade policy, pollution and public health in Chile. Using a general equilibrium framework, we synthesize economic, engineering, and health data in a way that elucidates this complex relationship and can support more coherent policy in all three areas. The basic tool of analysis is a 75-sector calibrated general equilibrium (CGE) model, incorporating monitoring functions for 13 effluent categories and a variety of mortality and morbidity indicators. While the methodology supports more general applications, present attention is confined to atmospheric pollution and health status in the Santiago metropolitan area. The trade policy scenarios examined include Chile's accession to the NAFTA, MERCOSUR, and unilateral trade liberalization. Unilateral trade liberalization induces substantial worsening of pollution and expansion of resource-based sectors, partly because it facilitates access to cheaper energy. NAFTA integration is environmentally benign in terms of pollution emissions. NAFTA accession, relative to other trade integration scenarios, actually reduces environmental damage. This results because trade diversion reduces reliance on cheap energy, unlike the other two trade integration scenarios. We find that emissions of small particulates (PM-10), SO2, and NO2, have the strongest impact on local mortality and morbidity. These three pollutants appear to be complementary in economic activity. For several types of emissions, accession to the NAFTA appears to be environmentally benign. MERCOSUR and unilateral liberalization have a negative effect on the environment and upon urban morbidity and mortality. Damages due to rising morbidity and mortality are of similar magnitude and substantial. Unilateral trade liberalization induces damages equal to 13 percent of the income gains arising from free trade. Revenue-neutral taxes on air pollutants induce net welfare gains from reduced health damages." @default.
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- W1590620592 date "1999-01-01" @default.
- W1590620592 modified "2023-09-24" @default.
- W1590620592 title "Trade, Environment, and Public Health in Chile. Evidence from an Economywide Model" @default.
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