Trade and the Environment Debate—WTO, Kyoto, and Beyond. Kristalina Georgieva Director World Bank Russia Office. Introduction. A decade of debates (often contentious)
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World Bank Russia Office
New developments and new challenges
Does trade liberalization limit the choice of environmental Policies?
for countries to export commodities that make use of
resource-intensive production factors (“pollution havens”).
standards (“race to the bottom”).
partners deemed to have inadequate environmental
Scale effect: It measures the increase in pollution that would be
generated if the economy were simply scaled up, holding constant
the mix of goods produced and production techniques.
Composition effect: Changes in the relative size of the economic
sectors following a reduction in trade barriers.
Technique effect: Refers to changes in production methods that
follow trade liberalization.
Example: Scale of Economic Activity by 1% raises pollution
concentrations by 0.25-0.5% , but accompanying increase in incomes
per capita drives concentration down by 1.25-1.5%.
Per Capita IncomeTrade, Growth and the Environment (Environmental Kuznets Curve)
Environmentalist view (all growth is bad!)
Grow-now clean-up later (macroeconomists view?)
environmental degradation at low income levels and speed up
improvements at high income levels.
problems are only partially right, as they focus only on abatement
(regulatory) effects of higher income ignoring the corresponding
scale and industrialization effects.
Preamble: Environmental goals recognized…
Article XX: Protect Life and Health
Tuna - Dolphin case
Shrimp - Turtle case
UK Emission Trading Scheme
EU Emission Trading Scheme
Chicago Climate Exchange
New South Wales Certificates
Not for Kyoto Compliance
Not Kyoto Pre-Compliance
Australia & New
Total funds under current management: $420 million