This paper analyses linkages between growth, trade and the environment in Costa Rica with a Computable General Equilibrium economy-wide model. The investigation considers trade liberalisation and environmental policy reform, and their impact on economic activity and polluting emissions. Environmental taxes are shown to have a small negative impact on growth while allowing a sharp decrease of emissions. Outward orientation promotes growth, but induces a risk of wholesale specialisation in “dirty” activities. Free trade, combined with appropriate effluent taxes, enhance factor reallocation towards competitive industries, and hence growth, while significantly abating emissions ...