1. Chapter 13 Trade and the Environment Link to syllabus Is Free Trade Anti-Environment? Is globalization anti-environment?

2. 1798 Essay on the Principle of Population Overpopulation; economics as “the dismal science” David Malthus, 1766-1834 Improved living standards (from industrial revolution) will lead to population growth, which will nullify previous increase in income/capita Why was he wrong? a)Ignored possibility of continuous technological progress; b) New ag lands in western hemisphere c) Demographic theory was wrong

3. “Neo-Malthusians:” limited resources and environmental problems Club of Rome: “Limits to Growth” 1970’s

4. Figure 13.1 page 286 Environmental problems by income level Complicates analysis of effect of income on the environment Smoke particles from Fireplace in a hut Carbon dioxide from cars, urban waste Sulfur dioxide And lead

5. Environmental Pollution Types of Environmental Degradation Small particles (sandstorms, smoke, small industry) Industrial Pollution (chemicals and smoke) Urban air & water (urban waste, ozone, and auto exhaust) Water (from dams, fertilizer) Deforestation/desertification Global warming, (cities affected by rising seas) Government policy: Pollution controls (local, national, international - Kyoto accord Investment in infrastructure for sewage, potable water, roads, etc. Location of industries Enforcement

6. Environmental Indicators, in per capita terms. United States Lebanon Qatar Saudi Arabia 10.04.0 50.05.0 10. 0 http://www.footprintnetwork.org

7. Germany United Kingdom Russia China 7.0 2.5

8. http://www.footprintnetwork.org Egypt U.A.E. TurkeyIran 2.0 10 3.5 3.0

9. Figure 13.2 page 287 Environmental effects of the Uruguay Round Table seems to say that effect of the Uruguay round was small.

10. Figure 13.3 page 294 Types of Externalities and Product Prescriptions.

11. Figure 13.4 page 296 When domestic production causes domestic pollution Country can be better off taxing domestic production, and importing, because a is less than b, and social cost is assumed (0.30) to be larger than the differential to world price.

12. Figure 13.5 page 299 Classic case of international pollution, & the ideal solution

13. Figure 13.6 page 312 Carbon Tax to Stabilize Atmospheric Carbon Dioxide Source: IMF World Economic Outlook, 2008