"[This report] is divided into three parts. Part A examines conceptual issues relating to the linkages between environmental policies and competitiveness. Part B draws on empirical studies undertaken under UNCTAD's technical cooperation programme on trade, environment and development, in particular country-specific studies carried out by research institutes in developing countries and countries in transition under the joint UNCTAD/UNDP project on 'Reconciliation of environmental and trade policies' and the joint UNCTAD/UNEP project on 'capacity-building on trade and environment'. The conclusions and recommendations are contained in Part C."--Summary.

This book sets out to examine one of the most important issues on trade and the environment namely, the trade effects of domestic environmental policy. The central question addressed is whether stringent domestic environmental policies reduce the international competitiveness of environmentally sensitive industries. This study is distinguished by two major innovations that go beyond the established literature: the examination of time-series evidence to explore the relationship between environmental regulations and trade patterns, and the introduction of technology factors, together with endowment factors, to explain the empirical evidence. To theoretically explore the dynamic linkage between environmental regulation, technological innovation and economic growth the author sets up an intertemporal dynamic general equilibrium model in which the more fundamental, dynamic determinant of economic growth is its capacity for technological innovation. The basic findings are that (1) changes in thestringency of environmental regulations do not have long-run growth effects; and (2) technological innovation is an important determinant of a country's long-run growth. The emphasis of this book is that the trade effects of domestic environmental policy can be better understood if one allows for a dynamic Ricardian technology factor in the conventional Heckscher-Ohlin framework. Innovation and subsequent increases in relative labour productivity, together with factor endowments, are important factors in determining the relationship between environmental regulation and international competitiveness. This result should help refocus the debate on the relationship between environmental regulationand competitiveness in international trade.

Restricting trade to compensate for differences in environmental standards is unlikely to improve competitiveness in environmentally sensistive industries. Higher environmental spending has had no noticeable effect on trade performance, so protection will not solve problems of noncompetitiveness. The reasons for good or poor performance are likely to lie elsewhere.

As the demand for environmental quality is increasing and as the current GATT rules monitored by the WTO are not very suitable for environmental protection, either a new international environmental organization may be formed soon or new environmental regulations may be added to GATT. In either case, understanding of the interactions between trade and the environment will be vital. Trade and the Environment presents both the theoretical and empirical exposition of (i) the impact of trade liberalization on environmental quality; (ii) the impact of environmental regulations on international competitiveness; and (iii) strategic trade and environmental policies. An important feature of Trade and the Environment as compared to earlier books is that it brings together the reciprocal interactions between trade and the environment. It can be used as the main or complementary textbook for a course on trade and the environment.

Can trade liberalization and environmental protection be pursued together, or do the two objectives inevitably conflict? The rapid evolution of international regimes and institutions is increasingly bringing such conflicts to the fore. A consensus, both on the extent of the clash, and on how it can be resolved, does not yet exist. This volume includes the proceedings from the RIIA's April 1997 conference on trade and the environment, which brought together prominent contributors from all sides of the debate, including industry, governments, academics, NG0s and intergovernmental institutions such as the World Trade Organization, UNEP, UNCTAD and the OECD. They examine the background to the issue; the impacts of trade-related environmental measures; the relationship between environmental policy, competitiveness and investment; industry and developing country concerns; and the evolution of dispute settlement procedures in the EU and the WTO. The concluding chapter features a wide-ranging discussion on the future of the debate and of the WTO's Committee on Trade and Environment.

The ability to support the earth's population and meet reasonable human aspirations depends on finding the most efficient and sustainable means of providing goods and services on a global scale. This document discusses trade-environment links, stakeholders perspectives including those from the resource sector, the environmental industry, the environmental community, and the aboriginal community. It also looks at the role of the Government of Canada; External Affairs and International Trade, Canada; the Department of the Environment; and the Department of Industry, Science & Technology. It presents information on regional experiences and multilateral regimes.

Handbook on Trade and the Environment is a good source for those looking for a better understanding of political issues, of legal debates, and of the state of discussion between government, industry, NGO, and private sector groups on topics that are not often treated elsewhere. Judith M. Dean, World Trade Review I would recommend the book to anyone concerned with the interaction of trade and the environment. John Goodier, Reference Reviews In this comprehensive reference work, Kevin Gallagher has compiled a fresh and broad-ranging collection of expert voices commenting on the interdisciplinary field of trade and the environment. For over two decades policymakers and scholars have been struggling to understand the relationship between international trade in a globalizing world and its effects on the natural environment. The authors in this Handbook provide the tools to do just that. The editor s well-worked introduction synthesizes the emerging themes of the collection, which is divided into three sections: trade and environmental quality, trade and environmental politics, and trade and environmental policy. Topics include the extent to which trade liberalization creates pollution havens where dirty industries flock to poorer countries with lax environmental standards, and conversely, how multinational corporations bring cleaner environmental technologies to developing countries when they choose to move abroad. The volume also addresses the extent to which national environmental policy and/or global environmental agreements clash with the emerging rules of the World Trade Organization and whether such environmental policies hinder export competitiveness. Finally, numerous political economy analyses of the complex political coalitions that arise to adapt to and mitigate changes in trade and environmental policy are provided. In addition to broader overviews of the field, in-depth case studies of nations and regions are offered, including the United States, the European Union, China, India and Mexico as well East Asia, Latin America, and Africa. The volume will serve as a guide for scholars new to the field as well as students and policy-makers needing a quick reference to the research on the interface between trade and the environment.

Examines how environmental performance affects commercial success and employment. Discusses the linkage between environmental regulation and investment. Covers trends from 1970 to 1992.