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GTAP Resources: Resource Display

GTAP Resource #698

"A framework for the environmental assessment of the NAFTA"
by Kim, Jeongdai

This paper provides an overview of the issues involved in modeling the environmental effect of the NAFTA with dynamic general equilibrium approach (DCGE). Given most approaches so far regarding the NAFTA and environment are journalistic discourses or anecdotal reports, the environmental assessment of the NAFTA with DCGE approach still need to explore many unprecedented problems. First, the study needs to identify the way to incorporate the income effect, environmental effect and their interactions in a model. Second, the DCGE approach requires the methodological robustness on how the various level of pollutions – local, regional (= transboundary) and global range of pollutions can be incorporated in multi-regional DCGE model. Third, given anticipatory behavior the starting point of the NAFTA should be considered as a part of sensitivity test.

As a natural extension of discussions about each of problems above, I try to locate the above problems in the conceptual flow of DCGE approach so that hopefully I can illustrate how the problems are related not only to each other but also to other general equilibrium concepts. The conceptual clarification and understanding of environmental variables in DCGE modeling will contribute to the advance of systematic analysis of the environmental effect of the trade liberalization in general and the NAFTA in particular.

Resource Details (Export Citation) GTAP Keywords
Category: 2001 Conference Paper
Status: Published
By/In: Presented at the 4th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2001
Version: n.a.
Created: (6/4/2001)
Updated: Bacou, M. (6/15/2001)
Visits: 2,045
No keywords have been specified.

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