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Document Type

Article

Abstract

International trade, while promoting economic growth and development, is one of many suspects contributing to excessive rates of environmental degradation. Free trade compromises environmental quality in favor of welfare improvements and economic prosperity. The difficulty of measuring environmental amenities, trade theory’s inability to address externalities and decisions overtime, and numerous market failures regarding socially optimal prices, serve as red flags requiring intervention. The most successful form of intervention is domestic policies that internalize externalities. Intervention is also necessary to balance the interests of environmentalists and free traders and to ensure that the gains from trade are devoted to environmental protection.

Publication Date

Spring 1999

Journal Title

Major Themes in Economics

Volume

1

Issue

1

First Page

40

Last Page

62

Copyright

©1999 by Major Themes in Economics

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Language

EN

File Format

application/pdf

Included in

Economics Commons

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