International Aspects of Environmental Questions
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International Aspects of Environmental Questions
ENVI 201Version spring 2004
Steve [email protected]
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Three Perceived Problems
• Growth, itself• Pollution Havens• Bad governance (environmental
policy and institutions)
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Four Real Challenges
• Poverty• Consumption by the rich, not the
poor• Protecting the Global Commons• Effective Global Environmental
Governance (policy and institutions)
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Story 1: Thank Japan for Clean Air
• 1970 Clean Air Act mandated big drop in auto emissions
• Detroit Big 3 said “can’t do it” – especially for California
• Honda was ready with cars that met the standards, CA mandated them
• CA was dominant consumer so it dictated standard practice to rest of US.
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Story 2: Turtles and Trade
• Asian shrimp boats catching endangered sea turtles
• WTO (1998): US can’t discriminate against imports based on how shrimp are caught
• US continued to press for Turtle Excluding Devices (TEDs)
• Legal wrangling continues today
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The Twin Environmental Crises
• Poverty– 1.2 Billion people live on less than
$1/day
• Human-Dominated Ecosystems– 42% of Earth’s annual production of
plant material is used by people(Pimm 2001)
• Both Numbers Matter
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Poverty and Environment
• 1.2 billion people live on less than $1/day
• In Ghana:– 60% of urban people have no sewers– 70% of energy from open wood burning– 40% of people drink contaminated
water• Worldwide, waterborne diseases
annually cause 11 million childhood deaths
• 700 million people breathe smoke from open indoor fires (Todaro 2000)
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Globalization is Not New
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Three Perceived Problems• 1) Growth wrecks the planet
Source: World Bank, “Greening Industry”
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Three Perceived Problems
• 2) Pollution Havens: Globalization causes competition for industry, causing (forcing?) some (all?) countries to live with dirty industry
• 3) Bad Governance: Secret decisionmaking by the“unelected WTO” and corporations ignores environmental effects
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Growth has Three Effects
• How Much is Produced?– World CO2 emissions continue to rise
with world economy
• What is Produced?– Massages vs. Steel
• How are things produced?– Carbon Monoxide down due to
catalytic converters
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Growth Example: China
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Growth Example: China• Economic output doubling every
decade, concentrated in urban areas– (how much / scale)
• People switching from bicycles to cars and from rice to meat– (what / composition)
• Slow switch from coal to natural gas, controls on particulates– (how / technique)
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Switching from Coal to Gas has other Implications…
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Growth in China: Effects
Source: World Bank, Greening Industry
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World Growth: How Much
Source: World Bank, Globalization Growth and Poverty
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World Growth: What?
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World Growth: How?
Source: World Bank, Greening Industry
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World Growth: Good Newsl
• Cleaner production is reducing air pollution (Antweiler Copeland Taylor AER sep 2001)
• Little direct evidence for strong “Pollution Haven” effects (but debate continues )
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Trade: Exporting Pollution?
• “Freer” trade certainly allows rich countries to export pollution more easily than they perhaps could have.
• But, corporations tend to build the same plant in China as they would in Indiana……Pollution control is more about learning new tricks than it is about brute effort.
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Exporting Pollution or Technology?
Source: Wheeler and Afsah 1996
Compliance with standards in Indonesia manufacturing
(green / blue / red / black scale)
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Adoption of Clean Technologyin Rich Countries, Open LDCs, and Closed LDCs
Source: World Bank, “Greening of Industry”
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Trade Policy and Environmental Policy
• Should Countries be able to exclude products based on how they are produced?
• WTO saying “maybe” for Shrimp that harm turtles
• Which products???• Generally, When should one
country intervene in affairs of another?
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Global Action for Global Spillovers
• Particulates from China drift to Alaska in four days (ADN 12/7/98)
• US Demand for Shrimp kills Sea Turtles in Malaysia
• Russian Fleet takes half the Pollock in the Bering Sea
• Carbon Dioxide warms the Arctic
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The Global Commons
• Owned by everyone• Owned by No One• Crucial part of our Human-
Dominated Ecosystem• Threatened by All• Who will safeguard the global
commons?
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Four Real Challenges
• Poverty• Sustainable Consumption by the
Rich• Protecting the Global Commons• Effective Global Environmental
Governance
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Responses: Treaties
• Montreal Protocol (1987), amended throughout 1990s– Banned production of CFCs, most
other ozone-depleting chemicals in developed countries by 1996, by 2010 in LDCs
– Ozone layer still declining, but expected to stabilize and return to pre-1970 state by 2030
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Responses: Treaties
• Convention on International Trade in Endangered Species (1973)– “Red Book” contains listings of
species for which trade is restricted or prohibited
– 162 signatories as of 2003
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Treaties….
• Convention on Biological Diversity (1992-Rio Earth Summit)– Signed by 168 countries
• Not signed by:– Iraq, Somalia, Saudi Arabia, Sierra
Leone, a few others
• Signed but not ratified by:– United States
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Responses: Treaties
• Kyoto Protocol (1997)– Developed countries negotiated an
average 5% reduction of greenhouse gases below 1990 levels.
– U.S. did not ratify the treaty
• All Treaties must first be negotiated, then (in most countries) ratified by the legislative branch
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Responses: Invest where Payoff is high for planet
• UN Global Environment Facility (GEF) and Clean Development Mechanism– Protect the planet wherever it’s
cheapest to do so, through prevention– 36 Rich countries funding $3 billion of
GEF projects in poor countries (1998)– www.gefweb.org
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Answers: End Perverse Subsides
• UNEP estimates perverse subsidies – at $500 billion – $1.5 trillion per yr
• Fisheries, forestry, agriculture– Promotes “too many boats chasing
too few fish,” “mining the rainforest”– Puts huge pressure on the planet
• WTO allows exceptions for “green” subsidies
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Answers: Health-Led Development
• Conventional wisdom: wealth causes health
• New wisdom: Health causes wealth– (Bloom, Science 18 Feb 2000)
• Productivity is the key link – it’s hard to work when you’re sick
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Answers: Informed Investors and Consumers
• “Know what you own” -- Peter Lynch, Fidelity Investments
• AK Permanent Fund top 10 stocks???– Microsoft, GE, Citigroup, Pfizer,
American Int’l, Johnson&Johnson, ExxonMobil, Intel, Walmart, IBM
• Shade-grown coffee – it sells• Home Depot now buys only
certified lumber
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Answers:Harmonization of Policies
• 25 Environmental Treaties in 1960• 250 today
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Answers: Tradable Greenhouse Gas
Permits• CO2 is not the only problem:– Methane is 25 times more potent
• Choose a target level of GHG emissions for entire planet
• Distribute permits to all (how?)• Free trade in GHG permits
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Tradable Permits, cont.
• Follows Pay-to-Play (Polluter Pays) Principle
• Cheapest reductions (leaky gas pipelines) will occur first
• Stimulates technical innovation• Start with equal numbers of
permits per person? (Global Commons Institute)– Carbon is already being traded
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Closing Thoughts
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Globalization vs Industrialization• Industrialization was an unstoppable
process – started in 1800• The benefits were (are still)
unevenly distributed• It took at least 50 years for the
benefits to reach everyone, especially women
• Let’s focus on making the lag time shorter for globalization
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Take-Home Messages• Poverty and stress on our Human-
Dominated Ecosystem (climate, oceans, biodiversity) are the real global environmental problems – regional pollution will largely take care of itself
• Growth of poorest countries attacks poverty and helps environment without creating pollution havens
• The Global Commons requires new forms of global management, such as tradable permits.
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ReferencesGlobalization, Growth and Poverty: Building an
Inclusive World EconomyWorld Bank Policy Research Reports (2001)http://econ.worldbank.org/prr/subpage.php?sp=2477
Environment and Trade: A HandbookUN Environment Program, et al. (2000)http://iisd.ca/trade/handbook.
Vanishing Borders: Protecting the Planet in the Age of Globalization.Hilary French, Worldwatch Institute. (2000)http://www.worldwatch.org/
Global Environment and Trade Study (GETS)Tufts Universityhttp://www.gets.org/
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ReferencesGoing Public On Polluters In Indonesia: Bapedal’s PROPER PROKASIH PROGRAM David Wheeler and Shakeb Afsah*
World Bank Policy Research Dept (1996)http://www.worldbank.org/nipr/work_paper/proper/
Greening IndustryWorld Bank Development Research Group (2000)http://www.worldbank.org/research/greening/
World Wildlife Fund (certification and ecolabeling programs)http://www.wwf.org
Global Commons Institutehttp://www.gci.org.uk/main.html
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Teaching and Learning Resources
United Nations Global Environmental Facility (GEF)http://www.gefweb.org/index.html