Environment and trade: a review of issues and methods

This survey attempts to provide an overview of the major issues concerning economic interactions between environmental and trade policies. Such a review is necessary because of the pressure that the accelerated pace of globalisation is placing on environment and trade. Not only is world trade increasing rapidly but global industrialisation related to trade has spawned severe environmental degradation. As a consequence, growing numbers of researchers have attempted to analyse the linkages between these areas. This study attempts to provide a perspective on received and future research by employing a dual approach economic studies of the major environmental and trade issues are analysed first and then progress in the methods necessary to analyse their interactions is assessed second. The conclusions suggest new possibilities for research design and policy goals.