Abstract. The economy-wide implications of sea level rise in 2050 are estimated using a static computable general equilibrium model. This allows for a better estimate of the welfare effects of sea level rise than the common direct cost estimates; and for an estimate of the impact of sea level rise on greenhouse gas emissions. Overall, general equilibrium effects increase the welfare costs of sea level rise, but not necessarily in every sector or region. In the absence of coastal protection, economies that rely most on agriculture are hit hardest. Although energy is substituted for land, overall energy consumption falls with the shrinking economy, hurting energy exporters. With full coastal protection, GDP increases, particularly in regions with substantial dike building, but utility falls, least in regions that protect their coasts and export energy. Energy prices rise and energy consumption falls. The costs of full protection exceed the costs of losing land. The results also show direct costs – the usual method for estimating welfare changes due to sea level rise – are a bad approximation of the general equilibrium welfare effects; previous estimates of the economic impact of sea level rise are therefore biased. Key words: computable general equilibrium, impacts of climate change, sea level rise JEL classification: C68, D58, Q25 1.

This paper can be downloaded without charge at: The Fondazione Eni Enrico Mattei Note di Lavoro Series Index: http://www.feem.it/web/activ/_activ.html Social Science Research Network Electronic Paper Collection: http://papers.ssrn.com/abstract_id=XXXXXX The opinions expressed in this paper do not necessarily reflect the position of Conflicting Perspectives in Trade and Environmental Negotiations Summary International trade negotiations have recently tackled the issue of possible free trade restrictions, justified - among others - on the basis of environmental concerns. Also, some analyses of international environmental agreements (especially in the field of climate change) have highlighted the key role played by changes in the terms of trade in determining the cost of environmental policies. Yet, secondary effects of international trade remain disregarded in many environmental policies, whereas the introduction of environmental trade barriers has been resisted, arguing that this may hide a Trojan horse of a renewed protectionism

We use an econometrically estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of the tradable emissions permit system proposed in the 1997 Kyoto protocol, under various assumptions about that extent of international permit trading. We focus, in particular, on the effects of the system on international trade and capital flows. Our results suggest that consideration of these flows significantly affects estimates of the domestic effects of the emissions mitigation policy, compared with analyses that ignore international capital flows. Warwick J. McKibbin Martin Ross Division of Economics Policy Office Asian Pacific School of Economics & Management Environmental Protection Agency & Research School of Pacific & Asian Studies Washington DC 20460 Australian National University USA ACT 0200 AUSTRALIA Wmckibbin@brook.edu Robert Shackleton Peter J. Wilcoxen Policy Office Economics Department Environmental Protection Agency University of Texa...

This paper explores the impact on economies of trade liberalization under alternative regional and multilateral arrangements: unilateral liberalization; liberalization as part of the ASEAN regional grouping; liberalization as part of the APEC regional grouping; or liberalization as part of a multilateral trade liberalization regime. The paper is based on a Dynamic Intertemporal General Equilibrium model (DIGEM) called the Asia-Pacific G-Cubed Model. It is shown that the long run gains from a country's own liberalization tend to be large relative to the gains from other countries liberalizing although this varies across countries. It is also shown that there is a significant difference between the effects on GDP (production location) and the effects on consumption per capita of the alternative liberalization approaches across countries. The timing of liberalization is also shown to matter. With open capital markets the gains from credibly announced trade liberalization are realized befo...

previous work by the authors and Peter Downes from Outlook Economics at www.outlookeconomics.com. We thank Peter Downes, Vivek Tulpule for useful conversations and Will Martin and Jean-Pierre Chauffour for comments. Nicole Mies provided helpful research assistance. McKibbin acknowledges support from ARC Discovery Grant DP0664024. The views expressed in the paper are those of the authors and should not be interpreted as reflecting the views of any of the above collaborators or of the Institutions with which the authors are affiliated including the trustees, officers or other staff of the ANU, Lowy Institute or the Brookings Institution.

This paper explores the global impact of financial market liberalization by countries in the Asia Pacific region. Almost all studies of liberalization by these economies have focused on the impacts of trade liberalization with little attention to the role of the restrictions on financial flows between economies. One major reason for this focus has been because restrictions on financial flows are very difficult to measure and therefore there is a scarcity of data. In addition, the computable general equilibrium models that typically attempt to measure the consequences of trade liberalization do not explicitly or adequately model financial flows between economies. In an attempt to illustrate the importance of financial flows and the potential impacts of financial liberalization, this paper uses a dynamic intertemporal general equilibrium multi country model called the Asia Pacific G-Cubed model. This model is unique in that it does explicitly model the flows of financial assets as well a...

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