EEP101_lecture16

Environmental barriers to trade environmental

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Unformatted text preview: ons. • Example: The gradual use of bans on methyl bromide, ban on aerosols, and others. Because of shared benefits of biodiversity, developed nations are interested in the presentation of resources in developing nations. Transfer mechanization (forest for debt) is needed to assure such conservation activities. Trade may reduce the need to use toxic chemicals or pesticides. Gains from trade may include Gains improvement in environmental quality • Example: Export of grapes and apples from southern countries (Chile) leads to the use of less storage in the northern countries. Trade may lead to export of less polluting inputs. India will benefit from exporting. Cleaner coal for energy generation to reduce air pollution increases energy production. Trade enables the production of trees and food in locations (warm climate zones) where the growth rates are much higher and preserves trees in areas with low growth rates. Environmental barriers to trade Environmental Environmental policy may be used as barriers to trade as international trade agreement leads to freer trade and reduces trade barriers. Environmental policy may be used as a means for protection. • Food safety regulation may be used for protective purposes. • Agricultural policies are replaced with policies to protect "rural life styles." Mechanisms are needed to identify where policies are genuinely developed for environmental protection and when they are used for protection of domestic industries. Environmental regulation may not exist or may not be enforced, particularly in poor countries. Water­borne diseases are major problems. Developing countries with medium levels of income per capita (say, above $2,000/year) address severe pollution problems: Air pollution Water pollution. Protection against overutilization of natural resources occurs mostly in richer countries with GNP/capita of, say, above $5,000/year. Rich countries will develop policies to protect resources that provide mainly aesthetic or consumptive benefits. Economic development leads to increased demand for environmental protection...
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This note was uploaded on 03/18/2010 for the course ECON C125 taught by Professor Zelberman during the Spring '09 term at Berkeley.

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