Industrial Pollution Linkages in North America: A Linear Analysis

In recent years, a surge of interest in the linkages between trade and the environment has occurred in the contexts of both regional and multilateral trade agreements. In this paper, we utilize a three-country, social accounting matrix (SAM) of the North American economy and data from the World Bank's Industrial Pollution Projection System (IPPS) to conduct a linear multiplier analysis of industrial pollution linkages in North America. We provide estimates of both direct and indirect inter-country effects for a detailed set of industrial pollutants. The strongest linkages occur in the petroleum, chemicals, paper, base metals, and transportation equipment sectors.Nafta, Pollution, Social Accounting Matricesy, Multiplier Analysis,