Blackwell Reference Online

Extract

Mainstream economists and environmentalists frequently find themselves on opposite sides of the “trade versus environment” debate. Economists tend to support liberal trade for reasons having little to do with the environment. Environmentalists often oppose trade liberalization because they think that it is likely to harm the natural environment. Economists argue that in the long run, trade will help the environment as income rises, promoting stricter environmental regulation, as environmentally friendly technologies are diffused, or as imports of resource-intensive goods relieve environmental pressures in resource-scarce countries. Environmentalists worry that even if nations gain from trade in the short run, they may suffer as trade eventually exhausts the natural environment in the resource exporting country. Economists are skeptical of efforts to harmonize environmental regulations across nations at different stages of development. Many environmentalists think that this kind of harmonization becomes more essential with liberalized trade. The exchange between Daly (1993) and Bhagwati (1993) exemplifies the debate between environmentalists and economists in academic circles. The disagreement over whether to grant US presidents fast-track negotiating authority for trade agreements reflects a wider debate over the merits of more liberal trade. The riots surrounding recent WTO ... log in or subscribe to read full text