ABSTRACT
The environmental assessment of free trade agreements (FTAs) were given by international organizations like the Organisation for Economic Co-operation and Development (OECD), and by industrialized countries, such as the United States, Canada, EU member states, and Japan. This chapter analyzes the environmental load of FTAs in the East Asia region by measuring CO2 emissions. As East Asia is an important part of the global supply chain, and because China is the world's largest energy consumer and CO2 emitter is one of the main trade partners, it is important to investigate the relationship between trade and the environment. To assess the environmental impacts of FTAs, an energy-environment version on the Global Trade Analysis Project (GTAP-E), a computable general equilibrium (CGE), model and GTAP database version 8.1, matching the 2007 baseline is used. The following seven simulations are assessed: China-Korea FTA, Japan-Korea FTA, China-Japan-Korea FTA, TPP members' FTA, TPP plus China-Korea FTA, TPP plus Japan-Korea FTA, and TPP plus China-Japan-Korea FTA.
