Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192280 
Year of Publication: 
2001
Series/Report no.: 
Discussion Papers No. 298
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper assesses effects of the last decade's multinational liberalisation of foreign trade, in terms of economic gains and in terms of pollution. By means of a disaggregated intertemporal CGE model for Norway two scenarios with and without the trade reforms are compared. Despite a slight decrease in GDP, emissions of several pollutants rise significantly. This is partly attributable to a modest increase in aggregate welfare, as polluting consumption rise significantly along with reduced labour effort. Further, the trade reforms, in combination with existing policy concessions, result in a long-run structural change in favour of heavy-polluting export industries. As these are large consumers of electricity, prices of clean hydropower rise and cause an economy-wide substitution towards more pollutive energy sources.
Subjects: 
Trade Reforms
Welfare
Environment
Intertemporal CGE Model
JEL: 
D58
D60
F13
Q25
Document Type: 
Working Paper

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