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 Hekscher--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 wastes and the foreign debt problem, with the possibility of debt-for-nature swaps, are also considered. Finally International Trade, Factor Movements, and the Environment addresses institutional issues on both national and international levels. The book will be essential reading for all international and environmental economists.
This book provides a thorough account of the static theory of international trade in the presence of national and trans-boundary environmental externalities...not only is Rauscher very comforatble with the techniques of comparative statics, but that he is also adept at getting maximum mileage from the use of such techniques. After posing different questions in trade and the environment as static optimization problems, Rauscher skillfully performs algebraic
manipulations, applies Cramer's rule, and makes reasonable assumptions in order to sign as many of the relevant derivatives, as possible. I suspect that researchers working in this area, and other Kyklos
readers who are interested in becoming knowledgeable about the scope of static analysis in trade and the environment, will want to read this book. - Amitrajeet Batabyal. Utah State University.