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Trade and environmental quality: A review of the evidence

Author
Thompson P., Strohm L.
Journal/Series
The Journal of Environment & Development | Vol. 5(4); 363 - 388; 26 p.
Date
1996
Source
IUCN (ID: ANA-059655)
Publisher | Place of publication
University of California | San Diego, CA, USA
Language
English
Field of application
International
Subject
Environment gen.
Keyword
International trade
Abstract

At the heart of the current debate between environmentalists and the trade community lie differences of opinion about the impact that trade liberalization has on environmental quality. This article reviews economists' evidence on the physical trade-environment link. Contrary to interpretations from the trade community,, the evidence lends no support to claims that positive income effects from economic expansion dominate negative scale effects. On the other hand, the evidence does not support environmentalists' arguments that trade is a significant source of environmental degradation, nor that trade liberalisation has induced significant international migration of dirty industries