When Standards Differ: The Effects of Free Trade on Environmental Regulation
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Authors
Hansen, Michael L.
Issue Date
1994
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
This analysis focuses upon the differing environmental standards between countries and the likelihood, direction, and implications of any harmonization of these standards.
There are certainly numerous issues concerning trade and the environment; the prospect of harmonizing standards, however, has sparked intense debate and seems to remain a central issue. It is believed that these issues transcend the context of NAFTA; for this reason, the issues are treated in a general context and any reference
to NAFTA is for purposes of illustration. The conclusions reached by this paper are disturbing. Most of the evidence suggests that free trade between nations with
differing standards could be environmentally destructive. Corporations forced to compete with firms regulated by less stringent standards could be placed at a competitive disadvantage. Both this disadvantage and the mobility of capital could
significantly pressure domestic governments to lower standards; countries with relatively lax regulations would have no incentive to raise those standards. Perhaps most importantly, both NAFTA and GATT deliberately attempt to harmonize environmental standards, usually at a level significantly lower than many nations have
determined to be optimal.
Description
vii, 58 p.
Citation
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.