Abstract
This survey examines the rapidly growing literature on the links between environmental policy and international trade. The paper reviews the main questions and results in the literature and tries to point out their relationship and significance. For the purpose of this survey the literature has been grouped into four main themes. The first two of these are optimal policy towards local and transboundary pollution respectively. The third theme is the impact of trade liberalisation on environmental quality and welfare. The final theme is the political economy of the trade and environment nexus.
This survey builds on the second chapter of my Ph.D. dissertation at the London School of Economics. I am indebted to Peter Neary, Tony Venables and in particular Alistair Ulph for comments on earlier drafts of this survey. The usual disclaimer applies. Financial support through a Marie Curie Fellowship from the European Union is gratefully acknowledged. 1 This is also reflected in the recent introduction of a separate JEL-Code for this field (Fl 8).
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Sturm, D.M. (2003). Trade and the Environment: A Survey of the Literature. In: Marsiliani, L., Rauscher, M., Withagen, C. (eds) Environmental Policy in an International Perspective. Economy & Environment, vol 26. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-0333-8_6
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