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Alleviating Environmental Degradation in the Asia-Pacific Region: International cooperation and the role of issue-linkage

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  • Raghbendra Jha

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Abstract

This paper argues that the most important environmental challenge within the Asia-Pacific region is that of uninternalised externalities. While developed countries have put in place mechanisms of governance and regulatory structures that internalise most of their domestic environmental external effects the same cannot be said of domestic environmental external effects of developing countries and transnational environmental external effects, although these are some of the most pressing environmental problems facing the countries in the region. Whereas developing countries are paying a high price for uninternalised domestic externalities they and the developed countries have an important stake in finding internalisation solutions to transnational environmental externalities. The paper argues that absence of linkage among these issues and other outcomes of keen interest to developing countries (viz. trade negotiations and the possibility of side payments) has made progress in this area impossible. Hence there is a case for institutional innovation to facilitate Coasian deal-making among these countries through issue linkage.

Suggested Citation

  • Raghbendra Jha, 2004. "Alleviating Environmental Degradation in the Asia-Pacific Region: International cooperation and the role of issue-linkage," Departmental Working Papers 2005-01, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2005-01
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2005/wp-econ-2005-01.pdf
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    1. Lisandro Abrego & Carlo Perroni & John Whalley & Randall M. Wigle, 1997. "Trade and Environment: Bargaining Outcomes from Linked Negotiations," NBER Working Papers 6216, National Bureau of Economic Research, Inc.
    2. Jha, Raghbendra & Murthy, K. V. Bhanu, 2003. "An inverse global environmental Kuznets curve," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 352-368, June.
    3. Carlo Carraro & Gilbert E. Metcalf, 2001. "Behavioral and Distributional Effects of Environmental Policy," NBER Books, National Bureau of Economic Research, Inc, number carr01-1, January.
    4. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    5. Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
    6. Magnus Lodefalk & John Whalley, 2002. "Reviewing Proposals for a World Environmental Organisation," The World Economy, Wiley Blackwell, vol. 25(5), pages 601-617, May.
    7. Raghbendra Jha & John Whalley, 2001. "The Environmental Regime in Developing Countries," NBER Chapters,in: Behavioral and Distributional Effects of Environmental Policy, pages 217-250 National Bureau of Economic Research, Inc.
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