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The Journal of Environment & Development
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Reviews

Trade and Environmental Quality: A Review of the Evidence

Peter Thompson

Laura A. Strohm

At the heart of the current debate between environmentalists and the trade community lie differences of opinion about the impact that trade liberalization has on environmental quality. This article reviews economists'evidence on the physical trade-environment link. Contrary to interpretations from the trade community, the evidence lends no support to claims that positive income effects from economic expansion dominate negative scale effects. On the other hand, the evidence does not support environmentalists' arguments that trade is a significant source of environmental degradation, nor that trade liberalization has induced significant international migration of dirty industries.

The Journal of Environment & Development, Vol. 5, No. 4, 363-388 (1996)
DOI: 10.1177/107049659600500401
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