AEM_ECON_2300_Lecture_14___Spring_2009

AEM_ECON_2300_Lecture_14___Spring_2009 - Trade and...

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Professor David Lee AEM-ECON 2300 Trade and Environment Two contrasting views: 1) A “False Conflict”?* The trade-growth-environment linkage: Trade growth Economic growth *J. Bhagwati, Columbia University
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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 Professor David Lee AEM-ECON 2300 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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Professor David Lee AEM-ECON 2300 Trade and Environment “False Conflict”? The trade-growth-environment linkage: Trade growth Economic growth Higher incomes increased demand for environmental amenities and conservation Many environmental amenities are “luxury goods” Many environmental indicators improve as incomes increase Urban air pollution: sulphur dioxide and particulate matter Fuel efficiency and auto export restraints (Feenstra) Summarized by the “Environmental Kuznets Curve”
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Professor David Lee AEM-ECON 2300 Environmental Kuznets Curve
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Justifications for EKC-type relationships Changing structure of economy and environmental implications: Agriculture & natural resources
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This note was uploaded on 04/25/2009 for the course ILRHR 6605 taught by Professor Grasso during the Fall '09 term at Cornell.

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AEM_ECON_2300_Lecture_14___Spring_2009 - Trade and...

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