International Evidence for the Trade-Environment Relationship

Songsoo Lim

Journal of Rural Development/Nongchon-Gyeongje, 2001, vol. 24, issue 4

Abstract: The purpose of this paper is to assess the interface between trade and the environment. Reviews of empirical studies show mixed results over the environmental Kuznets curve and the pollution heavens hypothesis. Apart from controversies over the methodological issues, they highlight complex aspects of the environment. A case study under the NAFTA illustrates the importance of social organization in shaping environmental outcomes. Trade meausres embedded in the Multilateral Environmental Agreements(MEAs) imply no automatic mechanism flowing from trade liberalization to environmental gains. Finally, with respect to policy implications, it suggests that the WTO should remedy market failure by adopting both the polluter-pays-principle and the provider-gets-principle, address standards harmonization by incorporating differences in environmental problems, and allow the system approach.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:288118

DOI: 10.22004/ag.econ.288118

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