Abstract

In this era of economic globalization, there has been remarkable growth in the volume and value of global trade, investment and finance. These international economic relationships have important implications for the natural environment, as all have been identified as having some linkage to environmental quality. The extent to which these international economic relationships contribute to environmental problems or to solutions for environmental problems is the subject of extensive debate (see, for example, Stevis and Assetto, 2001). Some see the relationship as largely positive, with environmental benefits being attached to the economic growth that global economic transactions seek to facilitate. While there may be some cases where the linkages have negative outcomes for the environment, for these thinkers environmental policies are seen to be able to address the situation in ways that do not harm global economic transactions. Others, however, see mainly negative implications arising from global economic relationships and the economic growth that is associated with it. For them, it is important that environmental policies do restrict global economic transactions.