TRADE, GROWTH AND THE ENVIRONMENT

TRADE, GROWTH AND THE ENVIRONMENT

July 2003 | Brian R. Copeland, M. Scott Taylor
The paper by Brian R. Copeland and M. Scott Taylor, titled "Trade, Growth and the Environment," explores the debate over the environmental consequences of liberalized trade. The authors critique both theoretical and empirical literature to address three key questions: the relationship between international trade, economic growth, and the environment; how this evidence can inform ongoing policy debates; and future directions for research. They argue that the debate has been hindered by a lack of a common language and insufficient use of economic theory and empirical evidence. The paper reviews the Environmental Kuznets Curve (EKC) hypothesis, which posits an inverted-U relationship between per capita income and environmental quality, finding limited support for a simple and predictable relationship. The authors also discuss the impact of trade liberalization on pollution, distinguishing between the pollution haven effect and the pollution haven hypothesis. They conclude by highlighting the need for more research to better understand the complex interactions between trade, growth, and environmental outcomes.The paper by Brian R. Copeland and M. Scott Taylor, titled "Trade, Growth and the Environment," explores the debate over the environmental consequences of liberalized trade. The authors critique both theoretical and empirical literature to address three key questions: the relationship between international trade, economic growth, and the environment; how this evidence can inform ongoing policy debates; and future directions for research. They argue that the debate has been hindered by a lack of a common language and insufficient use of economic theory and empirical evidence. The paper reviews the Environmental Kuznets Curve (EKC) hypothesis, which posits an inverted-U relationship between per capita income and environmental quality, finding limited support for a simple and predictable relationship. The authors also discuss the impact of trade liberalization on pollution, distinguishing between the pollution haven effect and the pollution haven hypothesis. They conclude by highlighting the need for more research to better understand the complex interactions between trade, growth, and environmental outcomes.
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[slides and audio] Trade%2C Growth and the Environment