Trade and the Environment
By Brian Roach and Jonathan M. Harris
This module is based on Chapter 19 of Harris and Roach’s textbook Environmental and Natural Resource Economics: A Contemporary Approach. It presents an analysis combining trade theory with the theory of externalities to show how the basic principles of gains from trade must be modified in a real world with many environmental complications. The institutional and policy issues involved in considerations of sustainable trade and “greening” global environmental institutions help understand the theoretical issues in the context of real-world policy.