drilling for oil; any impacts from BioD loss should have
already happened.
2. Non-unique: Were already in the middle of a mass
Vidal 10 [John Vidal. 8/16/2010. Protect nature for world economic security,
the environment
Taylor et al 98 [Werner Antweiler, Brian R. Copeland and M. Scott Taylor. Is
Free Trade Good for the Environment? American Economic Association. July 1998.
http://siti.feem.it/gnee/pap-abs/antweil.pdf]
This paper sets out a theory of how openness to trading opportunities affects
pollution concentrations. We started with a theoretical specification that
gave pride of place to scale, technique and composition effects and then
showed how this theoretical decomposition is useful in thinking about
the relationship between openness to international markets and the
environment. In our empirical section we adopted a specification directly linked
to our earlier theory. We then estimated this specification paying special attention
to the potentially confounding influences introduced by the panel structure of our
data set. Our results consistently indicate that scale, technique and composition
effects are not just theoretical constructs with no empirical counterparts. Rather
these theoretical constructs can be identified and their magnitude measured.
Moreover, once measured they can play a useful role in determining the likely
environmental consequences of technological progress, capital accumulation or
increased trade. These estimates may also be useful in aggregate CGE modeling of
the effects of various free trade agreements and other trade reforms [see for
example, Ferrantino et al.,1996]. Overall the results indicate that increases
in a countrys exposure to international markets creates small but
measurable changes in pollution concentrations by altering the pollution
intensity of national output. While our estimates indicate that greater trade
intensity creates only relatively small changes in pollution via the composition
effect, economic theory and numerous empirical studies demonstrate that trade
also raises the value of national output and income. These associated increases in
output and incomes will then impact on pollution concentrations via our estimated
scale and technique effects. Our estimates of the scale and technique
elasticities indicate that if openness to international markets raises both
output and income by 1%, pollution concentrations fall by approximately
1%. Putting this calculation together with our earlier evidence on
composition effects yields a somewhat surprising conclusion: freer trade
is good for the environment.
10.