Bohringer, ChristophRutherford, Thomas F.Tarr, David G.Turdyeva, Natalia2014-08-152014-08-152014-06https://hdl.handle.net/10986/19365This report investigates the environmental impacts of Russia's accession to the World Trade Organization. A 10-region, 30-sector model of the Russian economy is developed. The model is innovative and more accurate empirically in that it contains foreign direct investment, imperfectly competitive sectors, and endogenous productivity effects triggered by World Trade Organization accession along with environmental emissions data in Russia for seven pollutants that are tracked for all 30 sectors in each of the 10 regions. The decomposition analysis shows that despite the fact that World Trade Organization accession allows Russia to import better technologies and reduce pollution from the "technique effect," on balance World Trade Organization accession alone will increase environmental pollution in Russia through a shift toward dirty industries (the "composition effect") and the expansion of output with its associated increase in pollution ("scale effect"). The paper assesses the costs of three types of environmental regulations to reduce carbon dioxide emissions by 20 percent. The paper simultaneously implements a central case scenario with each of the carbon dioxide emission reduction policy initiatives. The analysis finds that the welfare gains of World Trade Organization accession are large enough to pay for the costs of any of the three environmental abatement policies, while leaving a net welfare gain. But the political economy implications are that the non-market-based policies are more costly and the command and control policy, which is not well targeted, is very costly. Based on a constant returns to scale model, the estimated welfare gains are insufficient to finance the costs of environmental regulation.en-USCC BY 3.0 IGOABATEMENTABATEMENT POLICIESADVERSE IMPACTAGGREGATE EMISSIONSAGRICULTURAL SUBSIDIESAIRAIR POLLUTIONANNUAL EMISSIONSBASE YEARBENCHMARKBILATERAL TRADECALCULATIONCARBONCARBON CONTENTCARBON DIOXIDECARBON DIOXIDE EMISSIONCARBON DIOXIDE EMISSIONSCARBON DIOXIDE REDUCTIONCARBON EMISSIONCARBON EMISSIONSCARBON MONOXIDECARBON TAXESCENTRAL BANKCHEMICALSCLEANER ENVIRONMENTCLEANER TECHNOLOGIESCLIMATECLIMATE CHANGECLIMATE POLICYCOCO2COALCOAL GENERATIONCOAL PRODUCTIONCOMBUSTIONCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE MARKETSCOMPETITIVENESSCONSTANT RETURNS TO SCALECONSUMERSCRUDE OILDECREASE IN EMISSIONSDEVELOPMENT ECONOMICSDEVELOPMENT POLICYECONOMETRIC ESTIMATESECONOMIC COSTSECONOMIC GROWTHECONOMIC IMPLICATIONSECONOMIC OBJECTIVESECONOMIC WELFAREECONOMICSECONOMIES OF SCALEELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONELECTRICITYELECTRICITY GENERATIONELECTRICITY SECTOREMISSION CONTROLEMISSION INTENSITIESEMISSION INTENSITYEMISSION LEVELSEMISSION REDUCTIONEMISSION TRADINGEMISSION TRADING SYSTEMEMISSIONSEMISSIONS DATAEMISSIONS INTENSITYEMISSIONS OF POLLUTANTSEMISSIONS REDUCTIONEMPIRICAL ANALYSISEMPIRICAL STUDIESENERGY BALANCEENERGY EFFICIENCYENERGY EFFICIENCY STANDARDSENERGY INTENSITYENERGY MIXENERGY SAVINGSENERGY USEENVIRONMENTALENVIRONMENTAL ACCOUNTINGENVIRONMENTAL CHALLENGESENVIRONMENTAL DAMAGEENVIRONMENTAL EMISSIONSENVIRONMENTAL IMPACTENVIRONMENTAL IMPACTSENVIRONMENTAL IMPLICATIONSENVIRONMENTAL KUZNETSENVIRONMENTAL POLICIESENVIRONMENTAL POLICYENVIRONMENTAL PROTECTIONENVIRONMENTAL QUALITYENVIRONMENTAL REGULATIONENVIRONMENTAL REGULATIONSENVIRONMENTAL STANDARDSEQUILIBRIUMEXCHANGE RATEEXPENDITURESEXPORTSEXTERNALITYFEASIBILITYFERROUS METALSFINANCIAL SERVICESFINANCIAL SUPPORTFIXED COSTSFOREIGN DIRECT INVESTMENTFOSSIL FUELFOSSIL FUEL COMBUSTIONFOSSIL FUEL USEFOSSIL FUELSFREE TRADEFUEL EFFICIENCYFUEL SUBSTITUTIONFUEL SWITCHINGGASGAS PRODUCTIONGAS SECTORGASESGDPGENERAL EQUILIBRIUM ANALYSESGENERATION CAPACITYGHGGREENER PRODUCTIONGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONGREENHOUSE GAS EMISSION REDUCTIONGREENHOUSE GAS EMISSIONSHYDROCARBONSIMPERFECT COMPETITIONIMPORT PRICESIMPORTSINCREASING RETURNSINCREASING RETURNS TO SCALEINEFFICIENCYINPUT USEINSURANCEINSURANCE COMPANIESINTERMEDIATE INPUTSINTERNATIONAL TRADEMARGINAL COSTMARGINAL COSTSMARGINAL REVENUEMARKET POWERMETALSMONOPOLISTIC COMPETITIONMONOPOLYMUTUAL FUNDNATIONAL OUTPUTNATURAL GASNATURAL GAS USENATURAL RESOURCESNEGATIVE IMPACTNEGATIVE IMPACTSNEW PLANTSNITROGENNITROGEN OXIDENOXOILOIL PRODUCTIONOIL PRODUCTSOPEN ECONOMYOPTIMIZATIONPARTICULATEPARTICULATE MATTERPER CAPITA INCOMEPETROCHEMICAL PRODUCTSPETROCHEMICALSPOLICY IMPLICATIONSPOLICY MAKERSPOLICY SCENARIOPOLICY SCENARIOSPOLITICAL ECONOMYPOLLUTIONPOLLUTION PROBLEMSPOWER GENERATIONPRICE ELASTICITIESPRICE IMPACTSPRICE TAKERSPRODUCERSPRODUCT DIFFERENTIATIONPRODUCTION FUNCTIONPRODUCTION PROCESSESPRODUCTIVE RESOURCESPRODUCTIVITYPUBLIC EXPENDITURESPURCHASING POWERRAW MATERIALSRECYCLINGREFINED OILREFINERIESRESOURCE ALLOCATIONRESOURCE USESCALE EFFECTSECURITIESSO2SULFURSULFUR DIOXIDESULPHURSULPHUR DIOXIDESUPPLY CURVESSUSTAINABLE DEVELOPMENTTAX RATESTELECOMMUNICATIONSTERMS OF TRADETOTAL EMISSIONSTOTAL FACTOR PRODUCTIVITYTOTAL OUTPUTTRADABLE EMISSIONTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADE REFORMSTRADE SYSTEMURBAN POPULATIONURUGUAY ROUNDVALUE OF OUTPUTWELFARE GAINSWORLD TRADE ORGANIZATIONWTO10.1596/1813-9450-6957