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Environmental Policy and Competitiveness in a Globalizing World: Challenges for Low-Income Countries in the UNECE Region

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  • Dieter Hesse

    ()
    (United Nations Economic Commission for Europe)

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    Abstract

    A major policy goal of low-income countries is to promote the creation of competitive economic capacities in order to achieve sustained growth and raise the material well being of the population. Economic growth is, however, associated with increasing environmental pressures, and the question is to what extent the costs of more stringent environmental policies will affect the competitiveness of domestic firms. This paper examines the empirical evidence on the impact of environmental protection costs on international trade and FDI location decisions and explores the opportunities that the process of technological upgrading, which is a major driving force of economic development, provides for reducing environmental pressures. Also considered are the policies and supportive institutional arrangements that can help to effectively integrate environmental protection into national economic development strategies and thereby promote sustainable production and consumption patterns.

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    File URL: http://www.unece.org/fileadmin/DAM/oes/disc_papers/ECE_DP_2007-6.pdf
    File Function: First version, 2007
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    Bibliographic Info

    Paper provided by UNECE in its series ECE Discussion Papers Series with number 2007_6.

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    Length: 22 pages
    Date of creation: Oct 2007
    Date of revision:
    Publication status: Published in UNECE Discussion Paper Series, No. 2007_6
    Handle: RePEc:ece:dispap:2007_6

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    Keywords: Environmental policy; competitiveness; Eastern Europe; transition economies;

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    1. Smarzynska Javorcik, Beata & Wei, Shang-Jin, 2001. "Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?," CEPR Discussion Papers 2966, C.E.P.R. Discussion Papers.
    2. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    3. Ronald Steenblik & Dominique Drouet & George Stubbs, 2005. "Synergies Between Trade in Environmental Services and Trade in Environmental Goods," OECD Trade and Environment Working Papers 2005/1, OECD Publishing.
    4. Jeffrey A. Frankel, 2003. "The Environment and Globalization," NBER Working Papers 10090, National Bureau of Economic Research, Inc.
    5. Revesz, Richard L. & Stavins, Robert N., 2007. "Environmental Law," Handbook of Law and Economics, Elsevier.
    6. Ronald Steenblik, 2005. "Environmental Goods: A Comparison of the APEC and OECD Lists," OECD Trade and Environment Working Papers 2005/4, OECD Publishing.
    7. Ronald Steenblik, 2005. "Liberalising Trade in 'Environmental Goods': Some Practical Considerations," OECD Trade and Environment Working Papers 2005/5, OECD Publishing.
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