"We live in an increasingly interconnected world. Trade flows worldwide are growing rapidly and global production patterns are shifting as countries follow their comparative advantage in production via trade. At the same time, however, there is growing concern about potential adverse environmental impacts from increasing trade."- John A. Dixon, Lead Economist, The Environment Department, World BankInterest in the trade and environment debate has intensified as a result of international trade agreements and because many proposed solutions to the climate change problem have potential implications for the global trading system. Clearly more empirical work is needed to inform the debate, guide policymakers toward solutions, and help set priorities.This volume is an attempt to further our understanding of the empirical links between trade and the environment. Thirteen chapters, which were presented as papers at a World Bank conference in April 1998, focus on three main themes:1. Effects of trade liberalization and growth on the environment2. The 'pollution haven' hypothesis3. Economic instruments for resolving global environmental problems.The papers address a number of different issues within each of the themes, offering new data or new questions and approaches. They are devoted to deepening our understanding and empirical knowledge of the various effects of trade liberalization. Only through a firm understanding of the linkages involved can well-founded policy advice be formulated.

Foreword

ix

(2)

Abstract

xi

(2)

List of Contributors

xiii

Chapter 1 Trade, Global Policy, and the Environment: New evidence and issues

1

(12)

Per G. Fredriksson

1. Introduction

1

(1)

2. Background -- Scale, Composition, and Technique Effects

1

(2)

3. Overview of the Volume Papers

3

(8)

4. Policy Conclusions and Recommendations

11

(2)

Chapter 2 Will Trade Liberalization Harm the Environment?: The case of Indonesia to 2020

13

(22)

Anna Strutt

Kym Anderson

1. Introduction

13

(6)

2. Adding an Environmental Module to the Projections Model

19

(1)

3. Empirical Projections of Environmental Impacts in Indonesia of Structural and Policy Changes to 2020

20

(9)

4. Conclusions

29

(2)

Appendix

31

(4)

Chapter 3 Trade, Environment, and Public Health in Chile: Evidence from an economy-wide model

35

(20)

John Beghin

Brad Bowland

Sebastien Dessus

David Roland-Holst

Dominique van der Mensbrugghe

1. Introduction

35

(1)

2. The TEQUILA Model

36

(1)

3. A Brief Description of the Santiago Health Model

37

(1)

4. Policy Reform Scenarios

38

(1)

5. Results from Policy Reform Simulations

39

(8)

6. Conclusions

47

(2)

Appendix

49

(6)

Chapter 4 Testing the Impact of Trade Liberalization on the Environment: Theory and evidence

55

(10)

Judith M. Dean

1. Introduction

55

(1)

2. The Links between Trade and the Environment -- Econometric Evidence

56

(1)

3. A General Model of Trade and the Environment

57

(1)

4. An Alternative Heckscher-Ohlin-Vanek Specification

58

(1)

5. An Application to China

59

(2)

6. Conclusion

61

(4)

Chapter 5 Industrial Pollution in Economic Development: Kuznets revisited

65

(18)

Hemamala Hettige

Muthukumara Mani

David Wheeler

1. Introduction

65

(1)

2. Development and Industrial Pollution

66

(2)

3. Data

68

(1)

4. Econometric Results

69

(6)

5. Implications of the Results

75

(2)

6. Summary and Conclusions

77

(2)

Appendix

79

(4)

Chapter 6 Preferential Trading Arrangements between Kenya and the EU: A case study of the environmental effects of the horticulture sector

83

(18)

Anil Markandya

Lucy Emerton

Sam Mwale

1. Introduction

83

(1)

2. The Horticultural Sector in Kenya

84

(4)

3. Tariff Structure for Horticultural and Related Products

88

(1)

4. Environmental Costs of Different Crops in Kenya

88

(4)

5. An Economic Analysis of Environmental Impacts

92

(2)

6. Estimating the Impact of Preferential Trading on Land Use, the Environment, and other Indicators

94

(3)

7. Conclusions

97

(4)

Chapter 7 Fuel Prices, Woodlands, and Woodfuel Markets in the Sahel: An integrated economic-ecological model

101

(14)

Kenneth M. Chomitz

Charles Griffiths

Jyotsna Puri

1. Introduction

101

(1)

2. Background

102

(2)

3. Model

104

(2)

4. Results

106

(2)

5. Discussion and Conclusions

108

(2)

Appendix

110

(5)

Chapter 8 In Search of Pollution Havens? Dirty industry in the world economy, 1960-1995

115

(14)

Muthukumara Mani

David Wheeler

1. Introduction

115

(1)

2. Development, Regulation, and "Pollution Havens"

116

(1)

3. Defining Dirty Industries

116

(2)

4. Pollution-Intensive Production in the OECD

118

(4)

5. Pollution-Intensive Production in Developing Asia and Latin America

122

(4)

6. Conclusions and Implications

126

(3)

Chapter 9 The Political Economy of Environmental Regulations, Government Assistance, and Foreign Trade

129

(12)

Paavo Eliste

Per G. Fredriksson

1. Introduction

129

(1)

2. Empirical Analysis

130

(2)

3. Empirical Results

132

(2)

4. Conclusion

134

(2)

Appendix

136

(5)

Chapter 10 Pollution and Capital Markets in Developing Countries

141

(20)

Susmita Dasgupta

Benoit Laplante

Nlandu Mamingi

1. Introduction

141

(1)

2. Dataset

142

(1)

3. Event-Study Methodology

143

(3)

4. Empirical Results

146

(2)

5. Conclusion

148

(3)

Appendix

151

(10)

Chapter 11 The Credibility of Trade Sanctions in International Environmental Agreements

161

(12)

Scott Barrett

1. Introduction

161

(1)

2. Trade Leakage and Trade Linkage

162

(2)

3. Free-Rider Deterrence in Linked Games

164

(1)

4. The Strategy of Trade Sanctions in a Self-Enforcing International Environmental Agreement

164

(4)

5. Conclusions

168

(2)

Appendix

170

(3)

Chapter 12 The Importance of Trade for the Ratification of the 1992 Climate Change Convention

173

(18)

Per G. Fredriksson

Noel Gaston

1. Introduction

173

(2)

2. The Data on Legislative Delay

175

(2)

3. The Determinants of Legislative Delay

177

(3)

4. The Results

180

(3)

5. Conclusion

183

(2)

Appendix

185

(6)

Chapter 13 Achieving Carbon Emission Reductions through Joint Implementation

191

(10)

Will Martin

1. Introduction

191

(1)

2. Joint Implementation and Technical Change

192

(3)

3. Relevant Elasticities of Demand for Energy and Emissions Intensities

195

(2)

4. Some Stylized Experiments

197

(1)

5. Supply Side Considerations

198

(1)

6. Conclusions and Policy Implications

199

(2)

Chapter 14 Carbon Abatement: Lessons from second-best economics

201

Ian W. H. Parry

1. Introduction

201

(1)

2. Results from Analytical Models

202

(5)

3. Results from Numerical Models

207

(2)

4. International Implications

209

(2)

5. Conclusion

211

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

Amazon no longer offers textbook rentals. We do!

Amazon no longer offers textbook rentals. We do!

We're the #1 textbook rental company. Let us show you why.

Trade, Global Policy, and the Environment

9780821344583

0821344587

Supplemental Materials

Summary

Table of Contents

Supplemental Materials

Rewards Program