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Bridging the Trade-Environment Divide

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  • Daniel C. Esty

Abstract

Perceived conflict between trade liberalization and environmental protection can be traced to a number of issues. Some tensions relate to the environmental Kuznets curve and whether economic growth yields environmental benefits. Other concerns arise from efforts to address transboundary externalities and disputes over the role of trade measures as an environmental enforcement tool. Another set of issues centers on the risk of a race-toward-the-bottom regulatory dynamic and the limits of legitimate comparative advantage. This paper argues that, in an ecologically and economically interdependent world, trade and environmental policies are inescapably linked as a matter of descriptive reality and normative necessity.

Suggested Citation

  • Daniel C. Esty, 2001. "Bridging the Trade-Environment Divide," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 113-130, Summer.
  • Handle: RePEc:aea:jecper:v:15:y:2001:i:3:p:113-130
    Note: DOI: 10.1257/jep.15.3.113
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.15.3.113
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:eneeco:v:66:y:2017:i:c:p:43-53 is not listed on IDEAS
    2. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    3. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, Elsevier.
    4. David Popp, 2012. "The Role of Technological Change in Green Growth," NBER Working Papers 18506, National Bureau of Economic Research, Inc.
    5. Tariku, Lamessa, 2015. "The Impact of Trade Liberalization on Air Pollution: In Case of Ethiopia," MPRA Paper 84619, University Library of Munich, Germany.
    6. Roelfsema, Hein, 2007. "Strategic delegation of environmental policy making," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 270-275, March.
    7. repec:eee:enepol:v:113:y:2018:i:c:p:356-367 is not listed on IDEAS
    8. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    9. Tania Sharmin Jahan, 2013. "Is There a Linkage Between Sustainable Development and Market Access of LDCs?," The Law and Development Review, De Gruyter, vol. 6(1), pages 143-223, July.
    10. repec:ipg:wpaper:201407 is not listed on IDEAS
    11. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2016. "Trade openness and environmental quality: International evidence," Energy Policy, Elsevier, vol. 92(C), pages 45-55.
    12. repec:bla:pacecr:v:22:y:2017:i:3:p:435-479 is not listed on IDEAS
    13. Alexandre Sauquet, 2014. "Exploring the nature of inter-country interactions in the process of ratifying international environmental agreements: the case of the Kyoto Protocol," Public Choice, Springer, vol. 159(1), pages 141-158, April.
    14. Jeffrey A. Frankel & Andrew K. Rose, 2005. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 85-91, February.
    15. L. Lambertini, 2014. "On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly," Working Papers wp976, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Leonardo Baccini & Johannes Urpelainen, 2014. "Before ratification: understanding the timing of international treaty effects on domestic policies," LSE Research Online Documents on Economics 50278, London School of Economics and Political Science, LSE Library.
    17. Kohn, Robert E., 2003. "Environmental standards as barriers to trade," Socio-Economic Planning Sciences, Elsevier, vol. 37(3), pages 203-214, September.
    18. repec:eee:enepol:v:115:y:2018:i:c:p:443-455 is not listed on IDEAS
    19. M. Zillur Rahman, 2013. "Relationship between Trade Openness and Carbon Emission: A Case of Bangladesh," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(4), pages 126-134.
    20. repec:eee:enepol:v:113:y:2018:i:c:p:386-400 is not listed on IDEAS
    21. Doganay, Seda Meyveci & Sayek, Selin & Taskin, Fatma, 2014. "Is environmental efficiency trade inducing or trade hindering?," Energy Economics, Elsevier, vol. 44(C), pages 340-349.
    22. Cletus C. Coughlin, 2002. "The controversy over free trade: the gap between economists and the general public," Review, Federal Reserve Bank of St. Louis, issue Jan., pages 1-22.
    23. repec:ipg:wpaper:7 is not listed on IDEAS
    24. Georg Müller Fürstenberger & Ingmar Schumacher, 2013. "Is Capital Market Integration a Remedy for the Environmental Poverty Trap?," Working Papers 2013-7, Department of Research, Ipag Business School.
    25. Müller-Fürstenberger, Georg & Schumacher, Ingmar, 2017. "The consequences of a one-sided externality in a dynamic, two-agent framework," European Journal of Operational Research, Elsevier, vol. 257(1), pages 310-322.

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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