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Optimal Volume of Environmentally Damaging Trade

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  • Robert E. Kohn
  • Peter D. Capen

Abstract

It is controversial whether international trade enhances or degrades the global environment. In this model, environmental quality, as measured by biodiversity, is damaged by the consequences of trade, which include the commercialization of natural habitat, pollution and bioinvasion. However, there are also benefits of trade. When both countries internalize the external costs of production and trade, measures of environmental quality may be higher or lower as a consequence of trade, but there is always, unambiguously, less trade the more environmentally damaging it is.

Suggested Citation

  • Robert E. Kohn & Peter D. Capen, 2002. "Optimal Volume of Environmentally Damaging Trade," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(1), pages 22-38, February.
    • Handle: RePEc:bla:scotjp:v:49:y:2002:i:1:p:22-38
    DOI: 10.1111/1467-9485.00219
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    Cited by:

    1. Polasky, Stephen & Costello, Christopher & McAusland, Carol, 2004. "On trade, land-use, and biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 911-925, September.
    2. Banerjee, Nandini & Kennedy, P. Lynn, 2006. "Sanitary and Phytosanitary Measures : A Game Theoretic Approach of Comparative Evaluation," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35375, Southern Agricultural Economics Association.
    3. Kohn, Robert E., 2003. "Environmental standards as barriers to trade," Socio-Economic Planning Sciences, Elsevier, vol. 37(3), pages 203-214, September.

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