IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v9y2001i4p197-203.html
   My bibliography  Save this article

Contradictions between WTO and sustainable development? The case of environmental dumping

Author

Listed:
  • Solveig Lothe

    (Norwegian School of Management, Sandvika, Norway)

Abstract

This paper discusses how the WTO agreement deals with the environmental and competitiveness concerns linked to trade and environmental policies. As the use of traditional export subsidies and other protectionist trade policies are now strongly restricted in the WTO, many countries will try to find other ways to increase competitiveness. One way of doing this is to use lax environmental taxation or regulation as indirect subsidies (i.e. 'environmental dumping'). If this is done, the reduced possibilities of using traditional protectionist trade policies could harm the environment, thus reducing the overall welfare gain from trade liberalization. Environmental countervailing tariffs have been suggested as a way of reducing incentives for environmental dumping. The WTO rules are examined in order to analyse the feasibility of the uses of environmental countervailing tariffs in the current and future framework of WTO, and the incentives and welfare consequences are analysed under different market scenarios. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Solveig Lothe, 2001. "Contradictions between WTO and sustainable development? The case of environmental dumping," Sustainable Development, John Wiley & Sons, Ltd., vol. 9(4), pages 197-203.
    • Handle: RePEc:wly:sustdv:v:9:y:2001:i:4:p:197-203
    DOI: 10.1002/sd.169
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/sd.169
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.169?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
    2. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-840, Supplemen.
    3. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    4. Daniel Esty, 1994. "Greening the GATT: Trade, Environment, and the Future," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 40, April.
    5. Conrad Klaus, 1993. "Taxes and Subsidies for Pollution-Intensive Industries as Trade Policy," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 121-135, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nelson Duarte, 2013. "Entrepreneurship and Local Sustainability: Is There any Relation? A Case Study in the Region Vale do Sousa," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 93-116.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rauscher, Michael, 2001. "International trade, foreign investment, and the environment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
    2. J. Neary, 2006. "International Trade and the Environment: Theoretical and Policy Linkages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(1), pages 95-118, January.
    3. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    4. Adel Ben Youssef & Ludovic Ragni, 1998. "Politiques environnementales stratégiques et concurrence internationale : théorie et évidences," Revue d'Économie Industrielle, Programme National Persée, vol. 83(1), pages 81-98.
    5. Ziesemer, Thomas & Michaelis, Peter, 2011. "Strategic environmental policy and the accumulation of knowledge," Structural Change and Economic Dynamics, Elsevier, vol. 22(2), pages 180-191, June.
    6. Choi, Kangsik & Lee, Ki-Dong & Lim, Seonyoung, 2016. "Strategic Trade Policies In International Rivalry When Competition Mode Is Endogenous," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 223-241, December.
    7. Fabio Antoniou & Panos Hatzipanayotou & Phoebe Koundouri, 2012. "Second Best Environmental Policies under Uncertainty," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 1019-1040, January.
    8. Moraga-Gonzalez, Jose Luis & Viaene, Jean-Marie, 2005. "Trade policy and quality leadership in transition economies," European Economic Review, Elsevier, vol. 49(2), pages 359-385, February.
    9. Kenji Fujiwara, 2011. "Market Integration and Competition in Environmental and Trade Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(4), pages 561-572, August.
    10. Yolande Hiriart, 2004. "Aspects stratégiques d'une politique environnementale incitative," Recherches économiques de Louvain, De Boeck Université, vol. 70(1), pages 53-77.
    11. Michel Cavagnac & Isabelle Péchoux, 2010. "Domestic Effects of Environmental Policies with Transboundary Pollution," Recherches économiques de Louvain, De Boeck Université, vol. 76(1), pages 113-134.
    12. Dermot Leahy & Catia Montagna, 1998. "Targeted Strategic Trade Policy with Domestic Cost Heterogeneity," Dundee Discussion Papers in Economics 100, Economic Studies, University of Dundee.
    13. Kuhn, Michael & Tivig, Thusnelda, 1996. "Ecological dumping and environmental capital flight: The economics behind the propaganda," Discussion Papers, Series II 324, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    14. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
    15. Riveiro, Dolores, 2008. "Environmental policy and commercial policy: The strategic use of environmental regulation," Economic Modelling, Elsevier, vol. 25(6), pages 1183-1195, November.
    16. Yoon, Jeong & Choi, Kangsik, 2018. "Why do export subsidies still exist? R&D and output subsidies," Japan and the World Economy, Elsevier, vol. 45(C), pages 30-38.
    17. Damania, Richard & Fredriksson, Per G., 2003. "Trade policy reform, endogenous lobby group formation, and environmental policy," Journal of Economic Behavior & Organization, Elsevier, vol. 52(1), pages 47-69, September.
    18. Collie, David R., 2019. "Trade Wars under Oligopoly: Who Wins and is Free Trade Sustainable?," Cardiff Economics Working Papers E2019/4, Cardiff University, Cardiff Business School, Economics Section.
    19. Panos Hatzipanayotou & Fabio Antoniou & Phoebe Koundouri, 2010. "Tradable Permits vs Ecological Dumping," Working Papers 2010.2, Fondazione Eni Enrico Mattei.
    20. Niels Nannerup, 1998. "Strategic Environmental Policy Under Incomplete Information," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(1), pages 61-78, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:9:y:2001:i:4:p:197-203. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.