International Trade, Factor Movements, and the Environment

International Trade, Factor Movements, and the Environment by Michael Rauscher, published by Clarendon Press in 1997, is a comprehensive study that delves into the complex relationship between environmental policies and international trade. Spanning 335 pages, this edition explores critical questions surrounding the impact of liberalized trade on environmental integrity and the potential for countries to adopt lenient ecological regulations to benefit domestic industries.
The book presents a theoretical framework utilizing traditional trade models, including Heckscher-Ohlin, alongside newer non-competitive models from contemporary trade theory and public choice. Rauscher addresses significant issues such as the implications of trade restrictions for environmental purposes and the use of environmental policy tools to meet trade-related goals. Additionally, the study examines often-overlooked topics like hazardous waste trade and the foreign-debt dilemma, including the concept of debt-for-nature swaps, providing a multifaceted perspective on the intersection of economics, public policy, and environmental science.
Official synopsis Publisher
Trade and the environment has become a major area of international political dispute. This study investigates the interdependencies between environmental policies and international trade policies. Does liberalization of international goods and factor markets cause environmental disruption and welfare losses? Will countries institute lax ecological regulations to favour their domestic producers? Should trade restrictions be used for environmental reasons and can environmental policy instruments be used to achieve trade-related objectives? Should there be what the author terms a ‘green GATT’? The approach is mainly theoretical, and uses traditional trade models like Heckscher-Ohlin as well as non-competitive models of the ‘new’ trade theory and public choice. Some other important but often-neglected aspects, such as trade in hazardous waste and the foreign-debt problem, with the possibility of debt-for-nature swaps, are also considered.
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