1 A DYNAMIC INPUT-OUTPUT MODEL OF NAFTA’S EFFECTS ON POLLUTION

This paper indicates the effects of NAFTA on pollution in Canada, Mexico and the United States that can be considered in a well-behaved multiregional input-output model. Since Mexico does not have enough data on sector-based pollution emission or pollution elimination costs to be used in an input-output model, nor does it have the technology to confront the increasing environmental deterioration that could result from NAFTA, active participation by Mexican authorities is necessary to achieve a win-win result. The Mexican government should, therefore, publish sector-based pollution data and promote the development of technology for improving the environment in order to be at the level required by the other NAFTA member countries