In this course, we will examine the various ways in which globalization affects our natural environment. We will uncover the role of international trade in air pollution, shifting dirtier industries to countries with lax environmental regulations, creating a cleaner environment via more efficient production, natural resource depletion, alleviating water scarcity, and waste management. With the aid of theory and empirical findings, we will examine the causes and consequences of international trade in the presence of harmful environmental externalities. Finally, we will examine how trade policy, environmental policy, and international environmental agreements can help correct such market failures.
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