Environmental and trade policies: Some methodological lessons

V. Kerry Smith, J. Andrès Espinosa

Research output: Contribution to journalArticle

11 Scopus citations

Abstract

This paper provides an overview of recent research on the interconnections between environmental and trade policies. It describes how the assumptions of these models can be important to the conclusions derived on the gains from coordination. The Harrison-Rutherford-Wooton CGE model of the European Union is used to illustrate the importance of these issues. This model was extended to include three air pollutants and their health effects as non-separable influences on household preferences in each region described by the model. The results suggest that the conventional assumption of separability in preferences between marketed and non-marketed goods is central to conclusions about the importance of coordination of these policies.

Original languageEnglish (US)
Pages (from-to)19-40
Number of pages22
JournalEnvironment and Development Economics
Volume1
Issue number1
StatePublished - Feb 1 1996

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ASJC Scopus subject areas

  • Development
  • Environmental Science(all)
  • Economics and Econometrics

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