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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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    References listed on IDEAS

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    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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