Trade Liberalization and Environmental Quality (Case Study: Iran And Eurasian Economic Union Members)

Document Type : Original Article

Authors

1 department of economics

2 Assistant Professorin of economics, Shahid Bahonar university

3 Professor of economics, Shahid Bahonar university

4 PhD student in department of economics and management, Shahid Bahonar University, Kerman, Iran

Abstract

Abstract
Energy is a significant commodity in the most economic activities and greenhouse gas emissions from energy consumption have made the world one of the most significant environmental challenges. In this research, the quality of environment and the welfare influences of decreasing import tariffs between Iran and the member countries of Eurasian Economic Union due to the model of energy-driven global trade analysis project (GTAP-E) and version 10 of its databases, in three scenarios (20% reduction and 60% reduction and 100% reduction in tariff rates) have been analyzed by GEMPACK software package. The results of this research indicate by increasing the degree of commercial liberalization, the volume of CO2 emissions of enterprises, due to the consumption of intermediate goods of domestic and imported production, has reduced and increased, respectively, and by the complete commercial liberalization of Iran and Eurasian Economic Union, CO2 emissions in Iran have decreased by 3.01%, and by increasing degree of trade liberalization, welfare increases.

Keywords