International Law, Industrial Location, and Pollution
Indiana Journal of Global Legal
International Law, Industrial Location, and Pollution
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DUANE CHAPMAN," JEAN AGRAS, * AND VIVEK SURI.**
The dominantposition ofeconomists on tradeand environmentis that
increasingtrade raisesliving standards,whichprovide the economic
basisfor reducedpollution. Professors Chapman, Agras, and Suri
present aperspective thatraisesvery differentpoints. First,the
dramatic growth of manufacturing in East Asia for global markets is
based entirely (or nearly so) on the importation of processed
pollution-intensiveraw materials. Fora typicalproductin this global
system, a U.S. consumer purchasingan Asian product made from
importedresourcesbenefits from a lower price and a cleaner local
environment; however, energy use andpollution associatedwith the
fabrication of the product occur in the country of origin of the raw
materials,andin the country where thefinalproductis manufactured
Second,a modest logical exercise in economic theory shows that
the presence of trade between two regions with strongly different
pollution control practices can increase world total pollution.
Turning againto empiricaldata, the decline in energyper realdollar
ofGNP in the OECD countrieshas been exactly offset by an increase
in energy intensity elsewhere. As a result, world energy intensity
(energy use per realdollarof GNP) has stayed almost constant,and
world energy use has been accelerating. Gross World Economic
Productpercapitahas not risenabove its value of14 years ago.
Actual data on global emissions are limited However, estimates
of three major world air pollutants show each with accelerating
growth. It is likely that actual data, if available, would show
exponential growth now for nuclear waste accumulation, sewage,
toxic metals andchemicals exposure, andother types ofpollutants.
The empirical perspective we see is very different from the
commonly held viewpoint. In summary, on a global basis, the
* Duane Chapman is Professor ofResource and Environmental Economics at Cornell University,
and Coordinator ofthe Climate Research Program at Cornell's Center for the Environment.
** Jean Agras is a graduate student at Cornell University, on temporary leave working as project
Coordinator of the Cornell/Mellon Program at the Institute for Economic Studies, University of Agriculture,
*** Vivek Suri is a Research Associate at the Tata Energy Research Institute, New Delhi, on leave
as a doctoral candidate in environmental economics at Cornell University.
The authors wish to thank Una Moneypenny and Eleanor Smith for their invaluable assistance in the
preparation of this manuscript. An earlier version of this paper was discussed at the Workshop on Equity
and the Global Environment Cornell University, April 1994.
internationaleconomy is characterizedby increasingtrade and world
economicproduct,stagnationin gross economicproductper capita,
accelerating energy use, and exponential growth in emissions of
The literature on trade and environment is extensive. Taken together,
Cropper and Oates and the World Bank reviewed more than thirty papers
published prior to 1992.'
Recently, Agras et al. reviewed more than forty
papers, of course with coverage of earlier work.'
Of these, no more than four
authors seem to find trade and environment to be adversely linked.'
The dominant view is expressed by the World Bank:
Evidence shows that developing countries do not compete for foreign
investment in "dirty" industries by lowering their environmental
standards.... Rather,... data... suggest the opposite: because it is
cheaper for multinational corporations to use the same technologies
as they do in industrialized countries, these firms can be potent
sources of environmental improvement."
Grossman and Krueger carry this point further, arguing that trade will cause
"the movement of the dirtier economic activities to the more highly regulated
Metaphorically speaking, the conclusions cited from the World Bank and
from Grossman and Krueger could be assumed to be multiplied forty-fold to
represent the dominance of this viewpoint in current economic literature.
Briefly, the main themes in the literature reviewed by Agras et al. are: (
although environmental costs may have been underestimated, they do not
erode international competitiveness, nor are they the chief cause in the
migration of dirty industries; (
) open trading regimes may be better for the
) internationally uniform environmental standards
(harmonization of standards) are not economically efficient; and (
cooperation between nations in formulating environmental regulations offers
a superior alternative to unilateral action.
In this paper, our modest goal is to make these empirical points: (
industrial growth in East Asia is based upon imported resources; (
between regions with different environmental protection policies can increase
total emissions; (
) global levels of major pollutants are increasing; and (
living standards, measured by gross economic product per capita, are not
increasing and may be declining.
H. RESOURCE DEPENDENCY AND INDUSTRIALIZATION IN ASIA
Industrial growth in Japan, South Korea, and Taiwan is widely recognized.
Less widely known, however, is that these countries depend almost wholly
upon the importation of processed industrial raw materials for their
manufacturing. Tables 1-3 show the magnitude of resource dependency for six
major resources. These six resources are essentially the basis for
manufacturing. For example, the three metals constitute seventy-five percent
of the weight of a new car, and petroleum derivatives add another fourteen
In addition, the three energy resources in the Tables constitute more than
five-sixths of the energy consumption for each country and for the group as a
whole.7 Given this magnitude of industrial resource importation, it is clear that
Asian manufacturers' demand for raw materials contributes to pollution
emissions in the regions that supply their industrial resources. Typically, metal
ores are processed near mines, and it is the initial processing which releases
most of the pollution associated with metal smelting.
6. GOVERNMENT AFF. Div., AM. AUTO. MFRS. ASS'N, AAMA MOTOR VEHICLE FACTS AND FIGURES
'93, at 50 (1993).
7. U.S. ENERGY INFO. ADMIN., DOE/EIA-0219(91) INTERNATIONAL ENERGY ANNUAL 1991, at xvi
9. Table prepared by authors. See LOFrY, supra note 8, at 5; OECD NUCLEAR ENERGY AGENCY,
supra note 8, at 5; U.N. Conferenceon Trade and Development, supra note 8, at 5; U.S. ENERGY INFO.
ADMIN., supra note 7, at 4.
Japanese Industrial Resource Dependency 1985, units of contained metal or fuel
Mineral or Fuel
Aluminum (10 mt)
Coal (1012 Btu)
Copper (103 Mt)
Iron Ore (103 not)
Petroleum (103 barrels)
10. Table prepared by authors. See LOFrY, supranote 8, at 5; OECD NUCLEAR ENERGY AGENCY,
supra note 8, at 5; U.N. Conference on Trade and Development, supra note 8, at 5; U.S. ENERGY INFO.
ADmN., supranote 7, at 4.
11. ZAMBIA CONSOL. COPPER MINE, LTD., Annual Report 49 (1992) [hereinafter ZCCM].
12. Chapman, supra note 3, at 457.
Sales Distribution of Zambian
(Own production copper-tonnes)
14. ZCCM, supranote 1i.
19% E2 France
15. Table prepared by authors. See CARTER BRANDON & RUMESH RAMANKUTTY, TOWARD AN
ENVIRONMENTAL STRATEGY, 65 (World Bank Discussion Paper No. 224, 1993).
It bears repeating that final consumers in North America and Europe are
typically the beneficiaries of the lower cost goods produced without pollution
control. At the same time, pollution is released in the countries of origin of raw
materials, and there is significant pollution growth in Asian manufacturing
The pollution impact is significant, as may be expected. One analysis
projects that Asia will contribute forty-five percent of the global growth in
CO2 emissions in this decade. 6 In SO2 emissions, Asia will exceed the
combined total of European and U.S. emissions in ten years. 17
Figures 2-4 show the historic lower growth in gross domestic product
(GDP) relative to the major pollutants for three East Asian countries. The
lower shaded line represents the slower growth of GDP, relative to the rapid
rise of pollutants, including sewage, sulfur dioxide, and toxic chemicals and
The implication of these data is that global pollution is increasing, in part
because of the interaction of trade and industrialization. The limited data
available on global pollution will be discussed below.
III. TRADE, INDUSTRIAL POLLUTION, AND ENVIRONMENTAL PROTECTION
Part A of Figure 5 shows two hypothetical regional supply relationships.
Each curve indicates the amount of refined copper that would be offered for
sale at the price levels on the vertical axis. S.3, for example, represents the
supply function for the world's industrialized region producers before new
sulfur regulations are implemented. SD represents the supply response for
developing country producers. Note that S,, is to the left of SD: at any price
level, less quantity will be supplied by industrial region producers.
16. Id. at 24.
17. Id. at 25.
Industrial Pollution, GDP in Indonesia"'
* Biochemical oxygen demand, + Suspended solids, * Sulfur oxides,
9 Particulates, * Toxicity, 4 Heavy metals, "-'..Growth in real GDP.
IndustrialPollution, GDP in Thailand'9
* Biochemical oxygen demand, +Suspended solids, * Sulfur oxides,
1 Particulates, * Toxicity, 4 Heavy metals, Growth in real GDP.
Industrial Pollution, GDP in the Philippines'
E Biochemical oxygen demand, +Suspended solids, * Sulfur oxides,
Q Particulates, * Toxicity, 4 Heavy metals,..... Growth in real GDP.
Total World Supply
2 QIB 4 OO
Regional Quantities Supplied
21. Figure prepared by authors.
In economic theory, the supply price is equivalent to the marginal or
incremental cost of production for increasing quantities supplied.
Part B shows the world copper market. QT is the total industry supply
function for both regions, the sum of the two regional relationships. The
downward-sloping customer demand function, Qc, indicates that customer
demand increases as market price declines. Market equilibrium is defined by
the intersection of the upward-sloping supply function with the
downwardsloping demand function, providing identical prices and quantities to
customers and producers. The global equilibrium is at about 7.5 million metric
tons (mmt) of world production, at a world price of about 660 per pound.
This market equilibrium price in Part B defines the regional production
levels in Part A: QB is at 3.0 mint, and QD is at 4.5 mint. The higher marginal
production cost for the industrial region reflects a considerable degree of sulfur
control. This is about sixty-seven percent, as discussed below. Consequently,
global sulfur dioxide emissions total I I mmt: 9 mint from developing country
producers and 2 mint from industrial country producers. This is assuming a
typical ratio of one-to-one for the sulfur-copper ore ratio and a two-to-one
sulfur dioxide-sulfur ratio.
Now suppose industrial regional countries tighten their sulfur control to
95% removal. In Figure 6, supply function SIG reflects the higher cost of the
new regulations control level. SD for developing countries is unchanged. The
new total supply function is QTG. The world demand function is unchanged at
Qc. Supply and demand are now in equilibrium at 760 per pound, and a world
use level of 6.7 mmt. The dramatic change is the displacement of industrial
country producers. Their production level is 0.7 mmt. QIG market share is
now ten percent, compared to forty percent before the new regulations.
New Total World
- -P V
Regional Ouantltles Supplied
22. Figure prepared by authors.
This theoretical analysis has been purposefully constructed to give this
result: global sulfur dioxide emissions are higher. For the industrial region,
ninety-five percent control on 0.7 mmt copper production means 0.07 mmt
sulfur dioxide emissions. The developing country sulfur dioxide emissions are
twelve mnt for the QD production level of 6 mmt copper. Total world sulfur
dioxide emissions have grown to 12.1 mint. Incidentally, Moller estimates
total global anthropogenic sulfur pollution emissions at 70 mint, and associates
10 mnt with sulfur emissions from metal processing.'
In this exercise, a further tightening of industrial region sulfur emission
control is associated with 1) a rise in global emissions, 2) a rise in world
prices, 3) falling world output, and 4) a severe contraction in production in the
controlled region and displacement to uncontrolled regional producers.
The same argument can be stated more formally: suppose an international
manufacturer can use the same technology in regions A and B, and assume that
trade and capital movements are unrestricted. Cost minimization is the goal,
with these assumptions:
ET =EA + EB,
Ej = e.
MCj -P 0
j = A,
Er represents total global or continental emissions from regions A and B. E is
the uncontrolled ratio of emissions to production. MC is the marginal cost of
production of Q in region j and comes from a Cobb-Douglas production
function. S is an index of control, ranging from 0 to 1. So P1, is the economy
of scale in production, and P. is the "diseconomy" of scale in pollution control.
Assuming there are no pollution controls in region B (SB = 0), the
following first order condition results as shown in the appendix:
23. Detlev Moller, Estimation of the Global Man-made Sulphur Emission, 18 ATMOSPHERIC ENvTL
12, 19 (1984).
, A I[--2 -i.
So, if P 2 (the diseconomy of scale in percentage pollution control) exceeds P3
(the economy of scale in output parameter), then Equation 4 is positive.
Higher standards in region A result in higher overall global pollution levels.
In many actual applications, P2 may be approximated by integers. The
first increment of pollution control can be very inexpensive. For example,
moving from high to medium sulfur coal when both are readily available at
comparable cost can be done at low incremental cost. As scarcer low sulfur
coal is purchased, the cost of reducing emissions rises. Sulfur scrubbing is still
more costly, and the increment in cost from ninety percent to ninety-five
percent sulfur removal could be comparable to the increment from fifty percent
to ninety percent. In Equation 4, if P2 is greater than P1,,the interaction of trade
with increasing regulation in region A leads to an increase in total global
emissions: the dependent variable is positive.
Obviously, again, the empirical reality is very important. If 32 is small,
there is no problem. However, if P2 is much larger than P,, the interaction of
trade with differential environmental standards may be significant.
IV. INTERNATIONAL LAW: GATT,NAFTA, AND RIO
As the global economy becomes formalized through new world and
regional agreements, it is evident that environmental protection has not been
considered a significant domain of trade policy, nor has trade been considered
relevant to environmental policy. The General Agreement on Tariffs and
Trade (GATT) has no explicit discussion of the problem of reconciliation or
harmonization of environmental policies. The GATT Secretariat explicitly
offered this judgment: "In principle, it is not possible under GATT's rules to
make access to one's own market dependent on the domestic environmental
policies or practices of the exporting country."24 Similarly, the attempts of the
North American Free Trade Agreement (NAFTA) to address this question
have been to no avail.2 5
In practice, GATT has generally been interpreted as prohibiting import
taxes or controls based upon environmental cost or policy differences. In the
dolphin/tuna case, the GATT panel simply overturned the applicability of the
U.S. Marine Mammal Protection Act on the apparent basis that the Act
regulated dolphin catches, and therefore could not be a basis for regulating
tuna imports. Consequently, the status of GATT and the Act seems to be this:
tuna boats cannot sell tuna caught with dolphins if they are U.S. boats selling
their product in the United States. If, however, a U.S. boat moves to Mexico,
it can sell tuna caught with dolphins in the U.S. market, and under GATT, the
United States cannot regulate or tax this practice. 6 As Strand et al. have
pointed out, U.S. boats moved and dolphin populations continue to decline.27
In a similar industrial case, the U.S. tax on imported chemical products
was overturned by a GATT panel. The United States had sought to partially
equalize environmental protection costs by applying a tax on imports
equivalent to the Superfund tax borne by domestic production."
If NAFTA and GATT are implemented in line with existing precedent, it
is apparent that the ability of U.S. policy to influence environmental practice
by its trading partners will be strictly limited.29 Consider a hypothetical
situation. An Asian auto manufacturer develops a new facility and community
in Mexico, near the border, for producing vehicles for sale in the United States.
Since municipal sewage control is not common in the new Asian
manufacturing centers," municipal taxes are not collected and no facilities are
built. The untreated sewage from the facilities' new workers enters the United
States. Can trade or environmental policy be invoked? Apparently not,
according to current NAFTA and GATT provisions.
Further, NAFTA institutionalizes a defacto exemption permitting Mexico
to continue its nonreporting of pollution emissions. Since the Clinton
Administration and Congress reviewed NAFTA in extensive detail, the
absence of substantive consideration of this subject from the Supplemental
Agreements implies an acceptance of nonreporting.
In a 1994 speech to the GATT Plenary Committee, U.S. Vice President Al
Gore discussed the creation of a Committee on Trade and Environment within
GATT's World Trade Organization.31 As yet, there is no formal program of
analysis or policy which will affect trade-environment interactions.
The Rio Environmental Summit in June 1992 focused on a very different
facet of trade-environment relations. Its major emphasis was on the global
environment, for which the Climate Convention was particularly important.
One of the most significant parts of this treaty may be the commitment of
signatories to publish greenhouse gas emission data.3 2 There is, however, only
voluntary agreement to limit growth of CO 2 emissions. Is it possible that
increased energy efficiency in the sense of reduced energy per dollar of GNP
may provide a partial market solution without governmental intervention?
Howarth and Schipper, et al. analyzed eight Organization of Economic
Cooperation and Development (OECD) countries and found continuing
declines in energy-industry GNP ratios." It must be remembered, though, that
many consumer and intermediate goods are manufactured in rapidly
industrializing countries; this displaces energy previously required in
developed countries to manufacture the same products. Table 5 shows
changes in aggregate energy intensity on a macro basis between 1965 and
1990. Note that energy used per dollar of GNP for the OECD countries
declined as expected from 13,600 Btu/$ to 10,000 Btu/$. This supports the
Howarth-Schipper argument but, in contrast, the rest of the world increased
from 23,300 Btu/$ to 28,100 Btu/$. The apparent world average declined very
slightly from 16,000 Btu/$ to 15,400 Btu/$ over the twenty-five year period.
There seems to be no factual basis for the assumption of an exogenous
reduction in energy use per-dollar of economic product.
34. WORLD BANK, supra note 1. MBtu means million Btus. Some calculations will differ because
of rounding error.
V. PROBLEMS IN EVALUATING DATA
The dominant perspective on trade and environment among U.S.
economists is that increasing trade raises living standards, which provide the
economic basis for reduced pollution. Of more than forty papers on the
subject reviewed by the authors, only four held the other position, that trade
is likely to increase overall pollution levels, or that the absence of pollution
control can be a positive factor in industrial location.
The studies reviewed by Agras, Suri, and Chapman usually used federal
survey data, which have excluded a number of potentially significant types of
environmental and worker protection costs. The analysis which follows is
based upon discussion with personnel in the Bureau of Economic Analysis, the
Bureau of the Census, and management personnel at factories, mines, and
smelters in the United States, Mexico, Chile, Zaire, Zimbabwe, Russia, and
South Africa. 5 There are six sources of error in the types of cost factors which
have been excluded.
One important factor is that many labor-intensive environmental activities
that are part of a production process may not be reported. For example, the
labor, fuel, and equipment costs of dust control in a pit mine by use of
watering trucks may not be reported. Similarly, collateral protection devices
that are a secondary part of production equipment may not be reported.
Relevant examples here would be the capital and labor costs of a dust hood on
an ore conveyor, or fans and hoods on a grinder.
Second, monitoring and planning activities may be excluded. Four
examples of environmental protection expenses that have been excluded would
) professional time spent with visitors inspecting protection systems; (
meteorological monitoring of ambient air quality; (
) environmental planning;
) time and expense in report preparation and meetings with state and
federal regulatory personnel.
A third omission from survey data is the cost of protecting workers from
environmental hazards. Roll bars, respirators, monitoring: all of these types
of items are excluded from environmental cost reports.
Fourth, interest expense or opportunity cost for investment in protection
equipment is not included in the survey data. This could be significant for
capital-intensive pollution control practices.
35. Chapman, supra note 3.
A fifth factor in under-reporting environmental costs in surveys may be
vintage. Current management may not perceive practices which preceded
them as protective, and instead focus on environmental practices introduced
during their tenure. Examples are previously installed respirators and tall
stacks. Finally, productivity loss has been excluded from the surveys. When
production stops or is slowed because of environmental problems, this output
loss is not counted as an environmental expense. New work by Gray and
Shadbegian and the Bureau of the Census finds that the cost of productivity
loss may be three or four times higher than the cost implied by capital
Recent analysis by the U.S. Office of Technology Assessment generally
supports the minority view given here that global trade and differing
environmental regulations affect pollution levels." It is also widely believed
that world living standards have been rising, in part because of the growth of
world trade (Figure 7). However, as Figure 8 shows, Gross World Product per
capita in real dollars has been fluctuating for fifteen years. The highest value
in the series was actually in 1980, with another peak in 1990 not quite reaching
that level. The current value is somewhat below the 1980 value.
Turning again to empirical data, the decline in energy per real dollar of
GNP in the OECD countries has been exactly offset by an increase in energy
intensity elsewhere. As a result, world energy intensity (energy use per real
dollar of GNP) has remained almost constant, and world energy use has been
Actual data on global emissions are very limited. One recent report
revealed accelerating emissions of sewage and air pollutants in association
with rising GDP in three countries with major growth in industry and GDP.
The question arises as to whether this is a global trend.
36. U.S. DEPT. OF Comm. ECON. & STAT. ADMIN., U.S. BUREAU OF THE CENSUS, STATISTICAL BRIEF
No. 93-13, MEASURING THE PRODUCTIVITY IMPACT OF POLLUTION ABATEMENT (Nov. 1993); GRAY &
SHADBEGIAN, supra note 3.
37. U.S. OFFICE OF TECH. ASSESSMENT, TECHNOLOGY AND THE ENVIRONMENT 196-200 (1994).
38. Jean Agras, World Trade as a Proportion of Gross World Product (Apr. 1994) (figure prepared
by author, data on file); LESTER R. BROWN, ET AL., VITAL SIGNS 1993: THE TRENDS THAT ARE SHAPING
OUR FUTURE 75 (Linda Starke, ed., 1993); World GNP data in 1993 prices from World Bank are deflated
by the U.S. GDP deflator from U.S. Council of Economic Advisors (1993).
1991 US $
39. Vivek Suri, Gross World Product Per Capita (Nov. 1994) (figure prepared by author, data on file);
World GNP data in 1993 prices from World Bank (1993) are deflated by the U.S. GDP deflator from U.S.
Council of Economic Advisors (1993). See U.S. COUNCIL OFECON. ADVISORS, ECONOMIC REPORT OF THE
PRESIDENT TOGETHER WITH THE ANNUAL REPORT OF THE COUNCIL OF ECONOMIC ADvISORS (1993); THE
INT'L BANK FOR RECONSTR'N & DEV., THE WORLD BANK, WORLD TABLES (1993).
Figure 9 reports estimates of four major world pollutants, each of which
shows accelerating growth. It is likely that actual data, if available, would also
show exponential growth now for sewage, toxic metals and chemicals
exposure, and other types of pollutants.
Our perspective raises very different points than those held by the
majority. The dramatic growth of manufacturing in East Asia for global
markets is based almost entirely on the importation of processed
pollutionintensive raw materials. For a typical product in this global system, a U.S.
consumer purchasing an Asian product made from imported resources benefits
from a lower price and cleaner local environment. However, energy use and
pollution associated with the fabrication of the product occur in the country of
origin of the raw materials and in the country where the final product is
A modest logical excercise in economic theory shows that the presence of
trade between two regions with strongly different pollution control practices
can increase total world pollution. The implementation of the GATT and
NAFTA agreements has severed the link between trade and actual
environmental practices. It seems likely that total global pollutant levels are
also increasing exponentially. In summary, on a global basis, the international
economy is characterized by increasing trade and world economic product,
stagnation in gross economic product per capita, accelerating energy use, and
exponential growth in emissions of major pollutants.
Carbon dioxide, ppm
Sulfur dioxide, mmt/y
Methane, parts per 10,000 vol
Nuclear fuel waste, lb heavy metal
Global Pollutants are Accelerating
Carbon dioxide, Boden, et al., Houghton, et al.
Sulfur dioxide, McClive
Methane, Houghton, et al.
Nuclear fuel waste, Chapman, 1994.
(E. Smith, Nov. 1994)
40. DUANE CHAPMAN, GLOBAL POLLUTANTS ARE ACCELERATING 3 (1995) (figure prepared by
author, data on file); Duane Chapman, Notes on Nuclear Fuel Waste Accumulation Data, (Comell
University). See GROSSMAN, supra note 5; CLIMATE CHANGE: THE IPCC SCIENTIFIC ASSESSMENT:
INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE 365 (John T. Houghton et al. eds., 1990); T. MCCLIVE,
ESTIMATION OF GLOBAL SO2 EMISSIONS: AN ECONOMIST'S PERSPECTIVE 13 (Department of Agricultural,
Resouce, and Managerial Economics Working Paper No. 90-1, 1990).
APPENDIX. Total Global Emissions and Regional Standards
Commencing with Equation 3 in the text,
Qj = ( 0 Sj~
ET = (1 - SA) E QA + (1 - SB) ! QB'
ddSEAT = (1 -SA)
-E Q A + (1 - SB ) E
dSA + (1 - SB)
d QA d S
assume SB = 0 and
1. Maureen L. Cropper & Wallace E. Oates , Environmental Economics: A Survey , 30 J. OF ECON. LITERATURE 675 ( 1992 ); WORLD BANK, WORLD DEVELOPMENT REPORT 1992 , at 25- 43 ( 1992 ) [hereinafter WORLD BANK]; INTERNATIONAL TRADE AND THE ENVIRONMENT , WORLD BANK DISCUSSION PAPER, NO. 159 . (Patrick Low, ed.).
2. JEAN AGRAS ET AL., ENVIRONMENT AND TRADE: A REVIEW OF THE LITERATURE 33 (Cornell University Department of Agricultural, Resource, and Managerial Economies Working Paper No. 94 -11 1994 ).
3. WAYNE B. GRAY & RONALD J. SHADBEGIAN , ENVIRONMENTAL REGULATION AND MANUFACTURING PRODUCTIVITY AT THE PLANT LEVEL (Department of Commerce Center for Economics Studies Discussion Paper CES 93-6 , 1993 ) ; see Duane Chapman, Environmental Standards and International Trade in Automobiles and Copper: The Casefor a Social Tariff,31 NAT . RESOURCES J. 449 ( 1991 ) ; see Emily Hoffnar et al ., Mexico's Maquiladora Trade and the Industrial Flight Hypothesis , 8 J. BORDERLANDS STUDIES 91 , 92 ( 1993 ) ; see Ramon Lopez, Environmental Degradation and Economic Openness in LDCs: The Poverty Linkages, 74 AM . J. AGRIC. ECON. 1138 ( 1993 ).
4. WORLD BANK, supra note 1 , at 67.
5. GENE M. GROSSMAN & ALAN B. KRUEGER , ENVIRONMENTAL IMPACTS OF A NORTH AMERICAN FREE TRADE AGREEMENT 35 (National Bureau of Economic Research Working Paper No. 3914 , 1991 ). Table 4: Industrial Production and Growth in Asia, 1965 -1990"s (1990 U.S. dollars) 1965 Industrial Production (U.S.$ million) 1990
24. GATI SECRETARIAT , TRADE AND THE ENVIRONMENT 10 ( 1992 ).
25. Executive Office of the President, NAFTA ( 1993 ). U.S. Trade Representative Office, Executive Office ofthe President, Review of U.S.-Mex. Environmental Issues ( 1992 ).
26. U.S. INT'L TRADE COMM'N, PUB . No. 2554, THE YEAR IN TRADE: OPERATION OF THE TRADE AGREEMENTS PROGRAM 1991 , 19 ( 1992 ).
27. Ivar E. Strand et . al., Trade , Institutions, andPreferencesfor Living Marine Resources, 74 AM. J. OF AGRIC. ECON . 1150 , 1151 - 54 ( 1992 ).
28. U.S. INT'L TRADE COMM 'N, INTERNATIONAL AGREEMENTS TO PROTECT THE ENVIRONMENT AND WILDLIFE 2- 3 ( 1994 ).
29. U.S. INT'L TRADE COMM'N , ENVIRONMENTAL COSTS AND NAFTA: POTENTIAL IMPACT ON THE U.S. ECONOMY AND SELECTED INDUSTRIES OF THE NORTH AMERICAN FREE TRADE AGREEMENT ( 1992 ) (testimony of Duane Chapman) .
30. WORLD RESOURCES INSTITUTE, WORLD RESOURCES 1992 -1993 , at 42- 43 ( 1992 ) ; Susan Chira, Wealthy Japan'sSpartanStyle , N.Y. TIMES , Oct. 30 , 1985 , at D 1.
31. Vice President Al Gore, Remarks Prepared for Delivery Meeting of the GATI Plenary Committee . (Apr. 14 , 1994 ) (transcript available from the White House Press Office) .
32. Jerald L. Schnoor , The Rio EarthSummit, ENVrL . SCi. AND TECH . 27 ( 1 ), 18 - 22 ( 1993 ).
33. Richard B. Howarth et al., Manufacturing Energy Use in Eight OECD Countries, ENERGY ECONOMICS , Apr . 1991 , at 135- 42 . Table 5: Aggregate World Energy, GNP Data: 1965 , 199034