| The relationship between trade and the environment has become increasingly of interest in recent years. Some studies suggest that trade liberalization generally helps the environment. This thesis provides evidence that in at least some cases, trade is correlated with environmental loss. The effects of trade on pollution, as represented by five emission types, and on resource depletion, as measured by changes in forest cover, are examined. Ordinary least-squares and seemingly unrelated regressions techniques are employed in the analyses. Results suggest that both free trade and conservation can contribute to welfare. The paper also examines market weaknesses which, if remedied, could lead to "internalization" of environmental costs and a more efficient market result. |
