The environmental impacts of free tradean analysis of the literature and policy implications

Resumen

Recent scientific discoveries clearly show that human beings face the challenge of satisfying their economic needs without significantly altering the basic functions of the biosphere. Our survival depends on satisfying those needs while simultaneously respecting the ecological functions: a balance between the level of economic activity and environmental protection should be found.On the other hand, the world is becoming more and more globalised, and a great share of the satisfaction of needs takes place through international exchanges, i.e., international trade. We should wonder whether this current manner to satisfy our needs is compatible with the maintenance of the aforementioned ecological balances.The relevant literature on this topic is both abundant and it reaches diverse conclusions contradictory. In general terms, three impacts of international trade on the environment have been identified: 1- A technical effect; 2- A composition effect; 3- A scale effect. The aim of this chapter is to shed light on the analysis of the causes and potential consequences of those effects. This would allow us to identify whether the international economic policy regime, whose foundations were established after the end of World War Il, and whose philosophy is to gradually eliminate the barriers to trade inorder to more efficiently meets human needs, is compatible with the challenge of altering to the lowest extent possible the basic functions of the biosphere.