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Integration of Trade and the Environment

In: Environmental Economics

Author

Listed:
  • Hans Wiesmeth

    (TU Dresden)

Abstract

Whereas Chapter 13 addressed the legal framework conditions of international trade in its relation to the environment, this chapter attempts an integration of trade and the environment. By means of a formal model, Bhagwati’s genuine problems, related to the integration of trade and the environment, are analyzed. The results show that the interaction of these – according to Bhagwati – most important issues on the global agenda is not always straightforward. It should be stressed in particular that the interests of the environment are not necessarily sacrificed when they are in conflict with those of free trade. From a formal point of view, the analysis considers subgame-perfect Nash equilibria of a game, modeling the strategic interaction of governments, producers and consumers. Further sections refer to the issue of harmonization of environmental standards, and to the effects of a tariff on equilibrium standards.

Suggested Citation

  • Hans Wiesmeth, 2012. "Integration of Trade and the Environment," Springer Texts in Business and Economics, in: Environmental Economics, chapter 0, pages 281-301, Springer.
  • Handle: RePEc:spr:sptchp:978-3-642-24514-5_15
    DOI: 10.1007/978-3-642-24514-5_15
    as

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