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| Smith, V. Kerry; Espinosa, Juan Andres. |
| This paper describes the results of using a new computable general equilibrium model for the European Union that incorporates local and transboundary externalities to evaluate the effects of trade policy reform. In contrast to all past theoretical and empirical research, this model includes the morbidity effects of three criteria air pollutants as nonseparable arguments of household preferences. The model is based on the Harrison-Rutherford Wooton model that identifies 11 regions, six aggregate commodities and three factor inputs. Three modifications were made to the model: (a) Stone Geary utility functions were used to characterize preferences for each consumer; (b) nine morbidity effects due to the three air pollutants were introduced as translating... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Trade and environmental policy; CGE models; Environmental Economics and Policy; Q20; H41. |
| Ano: 1996 |
URL: http://purl.umn.edu/10638 |
