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Articles 1 - 10 of 10
Full-Text Articles in Social and Behavioral Sciences
Environmental Crises: Past, Present Ad Future, M. Scott Taylor
Environmental Crises: Past, Present Ad Future, M. Scott Taylor
M. Scott Taylor
Environmental crises are distinguished by rapid and largely unexpected changes in environmental quality that are difficult if not impossible to reverse. Examples would be major extinctions and signi…cant degradations of an ecosystem. I argue there are three preconditions for crisis: failures in governance, an ecological system exhibiting a tipping point, and an economy/environment interaction with positive feedbacks. I develop a simple model to illustrate how a crisis may arise, and draw on our knowledge of past and present crises to highlight the mechanisms involved. I then speculate as to whether climate change is indeed a crisis in the making.
Unmasking The Pollution Haven Effect, M. Scott Taylor, Arik Levinson
Unmasking The Pollution Haven Effect, M. Scott Taylor, Arik Levinson
M. Scott Taylor
This paper uses both theory and empirical work to examine the effect of environmental regulations on trade flows. We develop a simple economic model to demonstrate how unobserved heterogeneity, endogeneity and aggregation issues bias measurements of the relationship between regulatory costs and trade. We apply an estimating equation derived from the model to data on U.S. regulations and net trade flows among the U.S., Canada, and Mexico, for 130 manufacturing industries from 1977 to 1986. Our results indicate that industries whose abatement costs increased most experienced the largest increases in net imports. For the 20 industries most affected by regulation, …
Unbundling The Pollution Haven Hypothesis, M. Scott Taylor
Unbundling The Pollution Haven Hypothesis, M. Scott Taylor
M. Scott Taylor
The “Pollution Haven Hypothesis” (PHH) is one of the most contentious and hotly debated predictions in all of international economics. This paper explains the theory behind the PHH by dividing the hypothesis into a series of logical steps linking assumptions on exogenous country characteristics to predictions on trade flows and pollution levels. I then discuss recent theoretical and empirical contributions investigating the PHH to show that each contribution either questions the logical inevitability or the empirical significance of one or more steps in the pollution haven chain of logic. Suggestions for future research are also provided.
Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, Appendix Proofs, M. Scott Taylor, Brian R. Copeland
Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, Appendix Proofs, M. Scott Taylor, Brian R. Copeland
M. Scott Taylor
No abstract provided.
Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, M. Scott Taylor, Brian R. Copeland
Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, M. Scott Taylor, Brian R. Copeland
M. Scott Taylor
This paper demonstrates how several important results in environmental economics, true under mild conditions in closed economies, are false or need serious amendment in a world with international trade in goods. Since the results we highlight have framed much of the ongoing discussion and research on the Kyoto protocol, our viewpoint from trade theory suggests a re- examination may be in order. Specifically, we demonstrate that in an open trading world, but not in a closed economy setting: (1) unilateral emission reductions by the rich North can create self- interested emission reductions by the unconstrained poor South; (2) simple rules …
Is Free Trade Good For The Environment, M. Scott Taylor, Werner Antweiler, Brian R. Copeland
Is Free Trade Good For The Environment, M. Scott Taylor, Werner Antweiler, Brian R. Copeland
M. Scott Taylor
This paper investigates how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade’s impact on pollution into scale, technique, and composition effects and then examine this theory using data on sulfur dioxide concentrations. We find international trade creates relatively small changes in pollution concentrations when it alters the composition of national output. Estimates of the trade-induced technique and scale effects imply a net reduction in pollution from these sources. Combining our estimates of all three effects yields a somewhat surprising conclusion: freer trade appears to be good for the environment.
Trade, Spatial Separation, And The Environment, M. Scott Taylor, Brian R. Copeland
Trade, Spatial Separation, And The Environment, M. Scott Taylor, Brian R. Copeland
M. Scott Taylor
We develop a simple two-sector dynamic model to show how pollution can provide a motive for trade by spatially separating incompatible industries. We assume that the production of "Smokestack" manufactures generates pollution, which lowers the productivity of an environmentally sensitive sector (Farming). Two identical, unregulated countries will gain from trade if the share of world income spent on the dirty good is high. In contrast, when the share of world income spend on the dirty good is low, trade can usher in a negatively reinforcing process of environmental degradation and real income loss for the exporter of Smokestack goods.
The Trade Induced Degradation Hypothesis, M. Scott Taylor, Brian R. Copeland
The Trade Induced Degradation Hypothesis, M. Scott Taylor, Brian R. Copeland
M. Scott Taylor
This paper develops a simple two-sector dynamic model to examine the effects of international trade when government policy regarding the environment is short-sighted, but still responsive to changes in income levels and in the quality of the environment. We show that free trade can usher in a negatively reinforcing cycle of increased pollution, lower environmental quality, and lower real incomes. Such cycles are not possible in autarky. We link the potential for trade to cause large environmental consequences to the structure of tastes and technologies and the attributes of industrial pollution.
Trade And Transboundary Pollution, M. Scott Taylor, Brian R. Copeland
Trade And Transboundary Pollution, M. Scott Taylor, Brian R. Copeland
M. Scott Taylor
This paper examines how national income and trading opportunities interact to determine the level and incidence of world pollution. We find that: (1) free trade raises world pollution if incomes differ substantially across countries; (2) if trade equalizes factor prices, human-capital-abundant countries lose from trade, while human capital scarce countries gain; (3) international trade in pollution permits can lower world pollution even when governments' supply of permits is unrestricted; (4) international income transfers may not affect world pollution or welfare; and (5) attempts to manipulate the terms of trade with pollution policy leave world pollution unaffected.
North-South Trade And The Environment, M. Scott Taylor, Brian A. Copeland
North-South Trade And The Environment, M. Scott Taylor, Brian A. Copeland
M. Scott Taylor
A simple static model of North-South trade is developed to examine linkages between national income, pollution, and international trade. Two countries produce a continuum of goods, each differing in pollution intensity. We show that the higher income country chooses stronger environmental protection, and specializes in relatively clean goods. By isolating the scale, composition, and technique effects of international trade on pollution, we show that free trade increases world pollution; an increase in the Rich North's production possibilities increases pollution, while similar growth in the poor South lowers pollution; and unilateral transfers from North to South reduce worldwide pollution.