Transcript Slide 1
Chapter 20
Sustainable Development:
International Trade and International
Agreements
© 2004 Thomson Learning/South-Western
Sustainable Development As a Global
Objective
Redefining Environmental Objectives
Environmental Quality Revisited
Environmental Quality – a reduction in
anthropogenic contamination to a level that is
“acceptable” to society
Moving Toward Sustainable Development
Sustainable development – management of the
earth’s resources such that their long-term quality
and abundance is ensured for future generations
• Intergenerational equity
Sustainable Development in Practice
Concept is vague and not a good notion to guide
policy
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Sustainable Development As a Global
Objective
Understanding the Implications of Economic
and Population Growth on the Environment
What the Data Imply
Data imply that the associated environmental
impact per unit of income must decline at a rate
between 3.5 percent and 4 percent per year to avoid
further pollution and natural resource depletion
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Sustainable Development As a Global
Objective
The Environmental Kuznets Curve – Models
an inverted U shaped relationship between
economic growth and environmental
degradation
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Sustainable Development As a Global
Objective
Figure 20.1 The Environmental Kuznets Curve
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Global Framework for Sustainable
Development
United Nations Conference on Environment
and Development (UNCED)
Agenda 21 – a voluntary action plan outlining the
course for worldwide progress toward sustainable
development
Rio Declaration on Environment and Development –
outlines 27 principles to act as guidelines for
achieving global environmental quality and
economic development
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Global Framework for Sustainable
Development
World Summit on Sustainable Development:
Johannesburg 2002
Objective was to renew worldwide interest in
sustainable development and to assess progress
achieved since the 1992 Rio Summit
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International Agreements To Control
Transboundary Pollution
International externality – a spillover effect
associated with production or consumption that
extends to a third party outside the market in
another nation
Montreal Protocol and Amendments
Important example of international cooperation
aimed at environmental protection
Chlorofluorocarbons (CFCs) – a family of
chemicals that scientists believe contributes to
ozone depletion
Halons – a major group of ozone depleters with
long atmospheric lifetimes
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International Agreements To Control
Transboundary Pollution
U.N. Framework Convention on Climate
Change (UNFCCC)
Key provision was a commitment to implement
national strategy to limit the release of greenhouse
gases
Greenhouse gases (GHGs) – gases collectively
responsible for the absorption process that
naturally warms the earth
Kyoto Protocol
Set binding GHG emission targets for developed
nations
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International Agreements To Control
Transboundary Pollution
London Dumping Convention (LDC)
Prohibited ocean dumping of certain wastes,
including radioactive wastes
U.S.-Canada Air Quality Agreement
Established to combat the problem of acid rain and
visibility impairment
• Acid rain – arises when sulfuric and nitric acids mix
with other airborne particles and fall to earth as
precipitation
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International Trade and Environmental
Protection
Overview of the Controversy: Free Trade
Versus Protectionism
Free Trade
Proponents argue that nations should trade with
one another because there are tangible gains to be
realized
The Protectionist View
Protectionism – fostering trade barriers, such as
tariffs or quotas, to protect a domestic economy
from foreign competition
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International Trade and Environmental
Protection
International Trade and Environmental
Objectives
Concerns
Lenient labor laws and relatively low wage rates in
less developed nations can adversely affect
employment in more advanced nations
Quality and desirability of imports produced in
nations with lax regulations on such issues at toxic
chemical use, fuel efficiency, and coal consumption
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International Trade and Environmental
Protection
International Trade Agreements and the
Environment
North American Free Trade Agreement (NAFTA)
General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO)
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