chapter 13 trade and the environment link to syllabus is free trade anti-environment? is...
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Chapter 13 Trade and the Environment
Link to syllabus
Is Free Trade Anti-Environment?
Is globalization anti-environment?
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1798 Essay on the Principle of PopulationOverpopulation; economics as “the dismal science”
David Malthus, 1766-1834
Improved living standards (from industrial revolution) will lead to population growth, which will nullify previous increase in income/capita
Why was he wrong? a)Ignored possibility of continuous technological progress; b) New ag lands in western hemispherec) Demographic theory was wrong
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“Neo-Malthusians:” limited resources and environmental problems
Club of Rome:“Limits to Growth”
1970’s
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Figure 13.1 page 286Environmental problems by income level
Complicates analysis of effect of income on the environment
Smoke particles fromFireplace in a hut
Carbon dioxidefrom cars, urbanwaste
Sulfur dioxideAnd lead
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Environmental Pollution
Types of Environmental Degradation Small particles (sandstorms, smoke, small industry) Industrial Pollution (chemicals and smoke) Urban air & water (urban waste, ozone, and auto exhaust) Water (from dams, fertilizer) Deforestation/desertification Global warming, (cities affected by rising seas)
Government policy: Pollution controls (local, national, international - Kyoto accord Investment in infrastructure for sewage, potable water, roads, etc. Location of industries Enforcement
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Environmental Indicators, in per capita terms.
United States Lebanon
Qatar Saudi Arabia
10.0 4.0
50.0 5.0
10.0
http://www.footprintnetwork.org
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Germany United Kingdom
Russia China
7.0 7.0
7.0 2.5
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http://www.footprintnetwork.org
Egypt U.A.E.
Turkey Iran
2.0
10
3.5 3.0
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Figure 13.2 page 287Environmental effects of the Uruguay Round
Table seems to say that effect of the Uruguay round was small.
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Figure 13.3 page 294Types of Externalities and Product Prescriptions.
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Figure 13.4 page 296When domestic production causes domestic pollution
Country can be betteroff taxing domesticproduction, and importing,
because a is less than b,and social cost is assumed(0.30) to be larger than thedifferential to world price.
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Figure 13.5 page 299Classic case of international pollution, & the ideal solution
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Figure 13.6 page 312Carbon Tax to Stabilize Atmospheric Carbon Dioxide
Source: IMF World Economic Outlook, 2008