Lecture_13___Fall_2007

Lecture_13___Fall_2007 - Lecture 15 Trade and...

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Lecture 15 1 of Professor David Lee AEM 230 / ECON 230 Trade and Environment “False Conflict”? (J. Bhagwati) ¾ The trade-growth-environment linkage: Trade growth Economic growth
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Lecture 15 2 of Professor David Lee AEM 230 / ECON 230 trade orientation 1963-1973 1973-1985 1985-1998 strongly outward 6.9% 5.9% 6.8% moderately outward 4.9 1.6 2.4 moderately inward 4.0 1.7 -0.1 strongly inward 1.6 -0.1 -0.2 average yearly growth rates Growth according to trade orientation, 1963-1998 Source: World Bank, World Development Report , 1987 and 1999/2000. The average yearly growth rates for 1985-1998 were calculated by the author
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Lecture 15 3of Professor David Lee AEM 230 / ECON 230 Trade and Environment “False Conflict”? (J. Bhagwati) ¾ The trade-growth-environment linkage: Trade growth Economic growth Higher incomes increased demand for environmental amenities and conservation
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Lecture 15 4of Professor David Lee AEM 230 / ECON 230 Trade and Environment “False Conflict”? (J. Bhagwati) ¾ The trade-growth-environment linkage: Trade growth Economic growth Higher incomes increased demand for environmental amenities and conservation ¾ Environmental amenities are “luxury goods” ¾ Many environmental indicators improve as incomes increase Urban air pollution: sulphur dioxide and particulate matter Fuel efficiency and auto export restraints (Feenstra) The “Environmental Kuznets Curve”
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Lecture 15 5of Professor David Lee AEM 230 / ECON 230 Environmental Kuznets Curve
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Lecture_13___Fall_2007 - Lecture 15 Trade and...

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