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Environmental issues for developing countries arising from liberalized trade in the mining industry

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  • Alyson Warhurst
  • Richard Isnor

Abstract

This review analyses some of the environmental and economic implications of current trade policies and changes in the world trading system for mineral producers and consumers. A principal factor which determines environmental performance is whether firms have the resources and capabilities to undertake innovation. We therefore place particular emphasis on the anticipated effects of liberalized trade on innovation and competitiveness at the firm level. Evidence indicates that improvements in environmental management would be expected to occur irrespective of the country hosting the investment. Due to the opening investment climate and relatively large quantities of mineral reserves, we expect these effects to be positive for many mineral producing developing countries. One difficulty which may arise is whether policy measures to promote production efficiency and develop innovation in mining and mineral processing operations could be interpreted as protectionism. The creation of new lines of credit, to promote, but not subsidize, technological and organizational innovation, may be the best way forward for developing countries.

Suggested Citation

  • Alyson Warhurst & Richard Isnor, 1996. "Environmental issues for developing countries arising from liberalized trade in the mining industry," Natural Resources Forum, Blackwell Publishing, vol. 20(1), pages 27-35, February.
    • Handle: RePEc:wly:natres:v:20:y:1996:i:1:p:27-35
    DOI: 10.1111/j.1477-8947.1996.tb00631.x
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    References listed on IDEAS

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    1. Anderson, David L., 1990. "Subsidy measurement problems in new mining projects," Resources Policy, Elsevier, vol. 16(3), pages 162-171, September.
    2. Anderson, David L., 1988. "Implications of the Canada-USA free trade agreement for the Canadian minerals industry," Resources Policy, Elsevier, vol. 14(2), pages 121-134, June.
    3. Tilton, John E., 1989. "Changing trends in metal demand and the decline of mining and mineral processing in North America," Resources Policy, Elsevier, vol. 15(1), pages 12-23, March.
    4. Tilton, John E., 1992. "Mineral endowment, public policy and competitiveness : A survey of issues," Resources Policy, Elsevier, vol. 18(4), pages 237-249, December.
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    Cited by:

    1. Richard Perkins, 2003. "Environmental leapfrogging in developing countries: A critical assessment and reconstruction," Natural Resources Forum, Blackwell Publishing, vol. 27(3), pages 177-188, August.

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