Measuring the Environmental Impact and its Reflection on the Balance of Payments in Iraq

Abstract

This research aims to study the effects Environmental pollution resulting from economic activities with high carbon content is calculated within the environmentally adjusted balance of payments account as the effects of the pollution are reflected in the form of environmental diseases or epidemics and sudden changes in the climate, in addition to the impact of these emissions on the desertification of the soil surface. As a result of acid rain and all of these problems and concerns, many countries around the world were forced to sign the Kyoto Protocol, which aims to stabilize pollution levels at levels and then agree on them globally in an attempt to reduce the effects of environmental damage, so we had to factor these costs in. The balance of payments is used to determine the amount of change that will occur in the prices of internationally traded commodities if these countries are unable to produce and export products with low pollution content, and the policies used to reduce this pollution require costs that must be reflected in the prices of traded commodities. As a result, the purpose of this study was to determine the amount of change that will occur in the prices of traded commodities if the climate agreement is implemented using the concept of the ecological footprint