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GTAP Resource #1233

"Assessing Environmental Effects of China's WTO Accession"
by Shantong, Li, Fan Zhai and Xuan Xiaowei

In order to examine the environmental effects associated with China's WTO accession according to its final offer, a dynmic recursive China(DRC) CGE model is constructed. The model includes two regions(Guangdong and the rest of the China),53 industries, 5 production factors and 2 representative households. The pollution is described by a vector of 14 measures of various water, air and soil pollution source in the model. The base year of the data is 1997 and the model is solved for subsequent years in 1998, 2000, 2002, 2004, 2006, 2008 and 2010.Our empirical results show the whole environmental effects of China's WTO accession are almost neutral. After WTO accession, China will gain in the GDP through production structure adjustment by putting more emphasis on their comparative advantage industry-such as textile and apparel. It will go to clearer production structure mainly from the elimination of MFA(Multi-Fiber Arrangement) quota.This production structure change will result in the change of pollution emission volume and structure. Combined with the scale effects, structural effects,product effects and technology effects caused by trade liberalization, China's WTO accession will the mitigate its environmental exacerbation,but this degree is very low, the whole environmental situation is still severe.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2003 Conference Paper
Status: Published
By/In: Presented at the 6th Annual Conference on Global Economic Analysis, The Hague, The Netherlands
Date: 2003
Created: Xiaowei, X. (4/28/2003)
Updated: Bacou, M. (9/22/2003)
Visits: 2,919
No keywords have been specified.

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