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Causes of soil pollution:- Toxic heavy metal deposits - Sewage sludge - Domestic wastes - Pesticides and fertilizers used excessively
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Harmful effects of UV rays on people - Skin cancer - Premature aging (photo aging) of the skin (different from normal chronological aging) - Cataracts and eye disorders (corneal sunburn and blindness) Immune system damage
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Central questions
Is globalization good or bad for the environment? Does globalization help or hurt in achieving the best tradeoff between environmental and economic goals?
Do international trade & investment allow countries to achieve more economic growth for any given level of environmental quality? Or do they damage environmental quality for any given rate of economic growth?
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Symmetric fears
Free traders fear that talk of environmental protection will be used as an excuse by some industries to gain protection for themselves against competition from abroad. Environmentalists fear that talk of free trade will be used as an excuse to give inadequate weight to environmental goals and excessive weight to GDP.
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I cm no e
/c p a ita
Economic growth (whether trade-led or not) is good for the environment above a peak level of income.
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for a given level of income : Race to the bottom in national regulation Gains from trade: ratcheting up standards, consumer power, innovation
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National sovereignty
RACE
TO THE
Environmental standards
BOTTOM
Unregulated emissions
Globalization
Multilateral governance
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Trade brings technological innovation, which can, for example, save energy. MNCs bring global standards to where the local alternative is
environmentally less friendly. Multilateral agreements Potential for trade sanctions, as in Montreal Protocol on ozone depletion Kyoto Protocol
International trade in emissions permits: a win-win feature Russia ratified as quid pro quo for EU supporting its WTO accession.
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Or the effects of trade that are beneficial (e.g., US imports of fuel-efficient autos)? It depends on what measure of environmental quality is at stake.
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5 0 0 100 200
Trade Openness
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300
400
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for SO2
concentrations
EKC: after an income of about The favorable $5,700/cap., further growth effects of trade tends to reduce pollution seem to dominate (via national regulation) No sign that total emissions turn Trade may also down. increase (CO2 is a global externality: little emissions even for a given level of regulation is possible at the income national level.)
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for CO2
emissions / capita
would achieve both enviro goal of reducing carbon emissions and economists goals of reducing deficit spending & an economic distortion.
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