Copeland, Brian R.2013-01-032013-01-032012-10https://hdl.handle.net/10986/12086This paper reviews the challenges and opportunities raised by international trade for developing countries considering a green growth strategy. A key concern is the effect of environmental policies on international competitiveness. For production-generated pollution, there is evidence that stringent environmental policy reduces some indicators of competitiveness, but the effect is small in most sectors. However, tightening up environmental standards is unlikely to reduce international competitiveness when pollution is generated by consumption. And where depletion of natural capital is a threat, effective environmental policy is an important component of a policy aimed at developing long-run international competitiveness. The effects of trade on environmental policy, the interaction between trade and technology transfer, and the interaction between trade and transboundary environmental problems are also reviewed. An emerging issue is the potential use of border taxes to curtail carbon leakage. The paper discusses some of the possible responses by developing countries. Some work has indicated that export taxes or voluntary export restraints applied to carbon-intensive production in non-coalition countries may be preferable to a carbon tariff regime. The paper concludes by suggesting some topics for further research.en-USCC BY 3.0 IGOABATEMENTABATEMENT COSTABATEMENT COSTSACIDACID RAINADVERSE EFFECTADVERSE EFFECTSADVERSE IMPACTSAGRICULTURAL ECONOMICSAGRICULTUREAIRAIR POLLUTANTSAIR QUALITYALLOCATIONALLOWANCEALTERNATIVE POLICIESBASELINE LEVELSCAP AND TRADE SYSTEMSCAPITAL GOODSCAPSCARBONCARBON EMISSIONCARBON EMISSIONSCARBON INTENSITYCARBON LEAKAGECARBON TAXCARBON TAXESCHEMICALSCLEAN AIRCLEAN AIR ACTCLEAN TECHNOLOGIESCLEARCUTTINGCLIMATECLIMATE CHANGECLOSED ECONOMIESCLOSED ECONOMYCOCOALCOMPARATIVE ADVANTAGECOMPETITION POLICYCOMPETITIVENESSCOMPLIANCE COSTSCONSUMERSCOST SAVINGSDEFORESTATIONDEVELOPED COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDIFFUSIONECOLOGICAL ECONOMICSECONOMIC ACTIVITYECONOMIC ANALYSISECONOMIC DEVELOPMENTECONOMIC EFFECTSECONOMIC GROWTHECONOMIC GROWTH RATESECONOMIC HISTORYECONOMIC RESEARCHECONOMIC THEORYECONOMICSECONOMIES OF SCALEELASTICITIESELASTICITYELECTRIC POWERELECTRIC POWER PLANTSELECTRICITYELECTRICITY SECTOREMISSIONEMISSION CHARGESEMISSION CONTROLEMISSION INTENSITYEMISSION PERMITSEMISSION REDUCTIONEMISSION REDUCTIONSEMISSION STANDARDSEMISSION TARGETSEMISSION TAXEMISSION TAXESEMISSION TRADINGEMISSIONSEMISSIONS LEAKAGEEMISSIONS POLICYEMISSIONS TARGETSEMISSIONS TAXESEMPIRICAL ANALYSISEMPIRICAL EVIDENCEENDANGERED SPECIESENERGY ECONOMICSENERGY POLICYENVIRONMENTALENVIRONMENTAL BENEFITSENVIRONMENTAL COSTSENVIRONMENTAL DEGRADATIONENVIRONMENTAL ECONOMICSENVIRONMENTAL ISSUESENVIRONMENTAL POLICIESENVIRONMENTAL POLICYENVIRONMENTAL PROBLEMSENVIRONMENTAL QUALITYENVIRONMENTAL REGULATIONENVIRONMENTAL REGULATIONSENVIRONMENTALLY FRIENDLY TECHNOLOGIESEQUILIBRIUMESTIMATES OF CARBONEXTERNALITIESEXTERNALITYFAIR TRADEFEASIBILITYFISHFISHERIESFISHERSFISHINGFOREIGN COMPETITIONFOREIGN DIRECT INVESTMENTFORESTFORESTRYFORESTSFOSSIL FUELFOSSIL FUELSFREE MARKETFREE TRADEFUEL PRICESFUTURE RESEARCHGDPGLOBAL CARBON EMISSIONSGLOBAL EMISSIONSGLOBAL ENVIRONMENTAL PROBLEMSGLOBAL WARMINGGOVERNMENT REGULATIONSGREENHOUSEGREENHOUSE GASESGREENHOUSE-GASGROWTH MODELSGROWTH RATEHAZARDOUS WASTEILLEGAL FISHINGIMPERFECT COMPETITIONINCOMEINCOME LEVELSINCREASING RETURNSINCREASING RETURNS TO SCALEINDUSTRIAL POLLUTIONINDUSTRIALIZATIONINFANT INDUSTRY ARGUMENTINTERMEDIATE GOODSINTERMEDIATE INPUTSINTERNATIONAL TRADELABOR COSTSLABOR FORCELABOR PRODUCTIVITYLAKESLAND ECONOMICSLONG LAGSLOWER COSTSLUMP SUMLUMP SUM TRANSFERSMARGINAL ABATEMENTMARGINAL ABATEMENT COSTSMARKET FAILUREMARKET FAILURESMARKET POWERMONETARY ECONOMICSMONTREAL PROTOCOLNATURAL CAPITALNET EXPORTSNET IMPORTSNEWLY INDUSTRIALIZED COUNTRIESNITROGENNITROGEN OXIDENITROGEN OXIDESNOXOILOPEN ECONOMIESOPEN ECONOMYOZONEPARETO EFFICIENCYPARTICULATEPARTICULATE MATTERPARTICULATESPASTURESPER CAPITA INCOMEPERFORMANCE STANDARDSPOLICY IMPLICATIONSPOLICY INSTRUMENTSPOLICY MAKERSPOLITICAL ECONOMYPOLLUTERSPOLLUTIONPOLLUTION ABATEMENTPOLLUTION CONTROLPOLLUTION REGULATIONPOLLUTION TAXPOLLUTION TAXESPOSITIVE EXTERNALITIESPPPRODUCERSPRODUCTIVITY GROWTHPROPERTY RIGHTSPUBLIC ECONOMICSPUBLIC GOODPUBLIC GOODSQUOTASREBATESREDUCING EMISSIONSRESOURCE MANAGEMENTRETURNS TO SCALESHADOW PRICESO2SOCIAL COSTSSPILLOVER EFFECTSSULFURSULFUR DIOXIDESULFUR DIOXIDE EMISSIONSSULPHURSULPHUR DIOXIDESUPPLY CURVESSUSPENDED SOLIDSSUSTAINABLE DEVELOPMENTTAX INCIDENCETECHNOLOGICAL CHANGETERMS OF TRADETOXIC SUBSTANCESTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADEOFFSVOLUNTARY EXPORT RESTRAINTSWATER POLLUTIONWATER QUALITYWTOWorld Bank10.1596/1813-9450-6235