Free Trade and the Environment: Mexico, NAFTA, and Beyond
Free Trade and the Environment examines the impact economic integration has on the environment, using Mexico, which transformed itself from one of the most closed economies to one of the world's most open, as a case study. As new nations join the Free Trade Area of the Americas or the World Trade Organization, they are considering the path taken by Mexico nearly 20 years ago.
The author investigates two commonly held and opposing beliefs in the policy community about the impact of free trade on the environment. While some believe that free trade will raise incomes in developing countries, thus encouraging governments to protect the environment, others argue that free trade simply provides an incentive for heavily polluting industries to move to developing countries with lax environmental regulations. The author shows that for Mexico in fact neither position is correct, and concludes with suggestions for free trade policies that couple environmental benefits with economic integration.
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1 Mexico and the Trade and Environment Debates
2 Environmental Kuznets Curve for Mexico?
3 Is Mexico a Pollution Haven?
The Case of Industrial Air Pollution I
5 Is Mexico a Pollution Halo? The Case of Industrial Air Pollution II
6 Harmonizing Up? The Development and Performance of Mexicos Environmental Policy
Enabling National Environmental Policy
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air pollution intensive analysis annual average beneﬁts CEMEX chapter cleaner coefﬁcients composition effect costs of environmental criteria air pollution developing countries economic activity economic costs economic growth economic integration efﬁcient energy intensity environmental damage environmental degradation Environmental Kuznets Curve environmental policy environmental problems Environmental Protection environmental regulation estimate Esty examine exports ﬁgures ﬁndings ﬁrms ﬁrst GDP per capita income increase industries in Mexico INEGI institutions intensities for Mexico investment Kuznets Curve levels of environmental levels of pollution LGEEPA maquiladora ment Mexican economy Mexican industry Mexican manufacturing Mexico City Mexico’s environmental Model NACEC NAFTA nations OECD Panayatou percent pollution haven hypothesis pollution in Mexico pollution intensive industries pollution per employee pollution per unit pollution-intensive pulp and paper regressions ronmental scale and composition sector signiﬁcant signiﬁcantly speciﬁc technologies tion trend U.S. dollars U.S. steel U.S.-Mexico border UNIDO value added water pollution World Bank