Trade and Environment in India: A Computable General Equilibrium Analysis

This paper examines general equilibrium implications of international trade and globalization on social welfare and environmental emission. It applies Computable General Equilibrium (CGE) modelling as our relevant methodology following Shoven and Whalley (1984). Constructing Energy/Environmental Social Accounting Matrix (SAM) and CGE model, it attempts to purport the effects of liberalized trade over different macroeconomic aspects, energy consumption and Green House Gas (GHG) emission. With the help of an index known as Pollution Terms of Trade (PTOT), it finds that trade and globalization in most of the cases aggravated the problem of GHG emission and made India 'Pollution Haven'.