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Trade versus the environment: Strategic settlement from a systems engineering perspective

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  • Keith W. Hipel
  • Amer Obeidi

Abstract

The key goal of this research is to employ a Systems Engineering approach to conflict resolution to clearly identify the ubiquitous conflict taking place at the local, national, and global levels between the basic values underlying trading agreements and those principles providing the foundations for environmental stewardship, and to suggest solutions as to how this most basic of disputes can be responsibly resolved. Subsequent to outlining the current situation involving free trade among nations and associated environmental problems, the positions of both sides in this chronic dispute between trade and the environment are summarized. Supporting the stance of free trade is the fundamental driving forces of profit maximization, while in direct opposition to this market‐driven value system are the principles of maintaining a healthy environment and related social welfare objectives. Accordingly, this global clash of values is systematically studied as a game in which the values of the Global Market‐Driven Economy (GMDE) are in confrontation with those of a Sustainable Ecosystem (SES) philosophy. A Systems Engineering tool for strategic analysis, called the Graph Model for Conflict, is utilized for realistically capturing the key characteristics of this type of complex conflict and for providing strategic insights regarding its potential resolutions. In particular, a systematic Graph Model investigation reveals that the environment and social standards will continue to deteriorate if the entrenched positions and related value systems of both camps persist. However, based on the strategic understanding gained from this formal conflict study, a number of positive proposals are put forward for resolving this conflict from a win/win perspective, at least in the long run. To highlight inherent advantages of employing a formal Systems Engineering tool for addressing strategic conflict problems, the application is used for illustrating how the Graph Model can be conveniently applied to a specific dispute and comments regarding the capabilities and benefits of the conflict methodology are provided at each step in the modeling and analysis procedure. © 2005 Wiley Periodicals, Inc. Syst Eng 8: 211–233, 2005

Suggested Citation

  • Keith W. Hipel & Amer Obeidi, 2005. "Trade versus the environment: Strategic settlement from a systems engineering perspective," Systems Engineering, John Wiley & Sons, vol. 8(3), pages 211-233, September.
    • Handle: RePEc:wly:syseng:v:8:y:2005:i:3:p:211-233
    DOI: 10.1002/sys.20031
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    References listed on IDEAS

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    1. Mansfield, Edward D. & Pevehouse, Jon C., 2000. "Trade Blocs, Trade Flows, and International Conflict," International Organization, Cambridge University Press, vol. 54(4), pages 775-808, October.
    2. Luai Hamouda & D. Marc Kilgour & Keith W. Hipel, 2004. "Strength of Preference in the Graph Model for Conflict Resolution," Group Decision and Negotiation, Springer, vol. 13(5), pages 449-462, September.
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    5. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    6. Edward D. Mansfield & Helen V. Milner & B. Peter Rosendorff, 2015. "Why Democracies Cooperate More: Electoral Control and International Trade Agreements," World Scientific Book Chapters, in: Edward D Mansfield (ed.), THE POLITICAL ECONOMY OF INTERNATIONAL TRADE, chapter 11, pages 227-263, World Scientific Publishing Co. Pte. Ltd..
    7. K W Li & D M Kilgour & K W Hipel, 2005. "Status quo analysis in the graph model for conflict resolution," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(6), pages 699-707, June.
    8. Eglin, Richard, 2001. "Keeping the "T" in the WTO: where to next on environment and labor standards?," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 173-191, July.
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    Cited by:

    1. Leandro Chaves Rêgo & France E. G. Oliveira, 2020. "Higher-order Sequential Stabilities in the Graph Model for Conflict Resolution for Bilateral Conflicts," Group Decision and Negotiation, Springer, vol. 29(4), pages 601-626, August.
    2. M. Ghanbarpour & Keith Hipel, 2009. "Sustainable development conflict over freeway construction," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(2), pages 241-253, April.
    3. Takehiro Inohara & Keith W. Hipel, 2008. "Coalition analysis in the graph model for conflict resolution," Systems Engineering, John Wiley & Sons, vol. 11(4), pages 343-359, December.
    4. M. Abul Bashar & Keith W. Hipel & D. Marc Kilgour & Amer Obeidi, 2018. "Interval fuzzy preferences in the graph model for conflict resolution," Fuzzy Optimization and Decision Making, Springer, vol. 17(3), pages 287-315, September.
    5. Annik Magerholm Fet & Erwin M. Schau & Cecilia Haskins, 2010. "A framework for environmental analyses of fish food production systems based on systems engineering principles," Systems Engineering, John Wiley & Sons, vol. 13(2), pages 109-118, June.

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