Edited by Jeroen C.J.M. van den Bergh
Chapter 28: General Models of Environmental Policy and Foreign Trade
Karl W Steininger 1. Introduction The path towards answering environmental policy and foreign trade questions lies between - and draws upon -two subfields of economics, namely international and environmental economics. Both are very rich areas in their own right, and a survey of their interlinkage cannot but be selective. This chapter seeks to provide a link between a categorization of the issues on the research agenda, and the body of general equilibrium theory as well as a link to empirical research to shed light on these areas. Some of the links have already been explored; others point to areas of future work. Interest in the field has increased dramatically since the early 1990s. The aim of this survey is to give the flavour of a subject which remains a vibrant and fruitful source of theoretical insight, of testable hypotheses and of illuminating quantification. The rapid integration of the world economy puts questions such as the following high on the agenda: 0 0 0 Which countries export goods the production of which is pollutionintensive? Can a country unilaterally introduce an energy or CO, tax without significant implications for its trade flows or for industry migration? How does trade liberalization affect the environment? Each of these questions represents one key area in a threefold classification of trade and environment issues within economics: (a) in terms of positive theory, the objective of international economics is to explain the manifestation of the international division of labour and resulting trade flows (the pattern of trade)...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.