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1、TradeandenvironmentIsfreetradeanti-environment?Freetrademakesenvironmentalproblemsworsecasesoftheopposite:----environmentalpoliciesthatlimitordistorttraderesultinenvironmentaldamage;----environmentaleffectsofgovernmentpoliciesthatprotectdomesticagriculture;----freertradeincapi
2、talequipmentwithenvironmentalfriendlytechnologiesandinenvironmentalservicesIsfreetradeanti-environment?Freetradepermitsproductiontobeshiftedtocountriesthathavelaxenvironmentalstandardstheeffectsaresmall.--coststofirmsofmeetingenvironmentalprotectionregulationsareusu.small;--fe
3、arsofunexpectedliabilitiesincasesofaccidents,generalriskstocorporatereputationsfromappearingtocauseexcessiveharmtotheenvironment,andthecostsofmeetingmorestringentregulationsinthefutureIsfreetradeanti-environment?Effectsbroughtbyfreertrade--compositioneffect;--largersizeoftheec
4、onomy;--higherincomeIsfreetradeanti-environment?Threebasicpatternsofcombinedsize-incomeeffect(figure12.1)--Environmentalharmdeclineswithrisingincomeperperson;--environmentalharmriseswithrisingincomeperperson;--TherelationshipisaninvertedU.Isfreetradeanti-environment?Environmen
5、taleffectsoftheUruguayRound(figure12.2)--compositioneffects;--sizeandincomeeffects;Theactualeffectsvarybycountryandbypollutant.Theoveralleffectsfortheworldaregenerallysmall.Isfreetradeanti-environment?Summary--Freetradeisnotinherentlyanti-environment.--Relocationofproductionto
6、avoidstringentenvironmentalstandardsissmall.--Shiftstowardsfreertradecauseavarietyofchanges,buttheneteffectsonoverallpollutionusu.Seemtobesmall.IstheWTOanti-environment?Agovernmentthattakesactionstocontrolenvironmentaldamagecausedbyitsownfirms’productionisnotviolatingWTOrules.
7、IstheWTOanti-environment?Twoenvironmentalexceptionstothecaseforfreetrade:--necessarytoprotecthuman,animal,orplantlifeorhealth;--relatingtotheconservationofexhaustiblenaturalresourcesifsuchmeasuresaremadeeffectiveinconjunctionwithrestrictionsondomesticproductionorconsumption.Is
8、theWTOanti-environment?Threeimportanttypesofpoliciesthatmayqu
