Nick Johnstone

Trade liberalization, economic specialization and the environment

Abstract A great deal has been written, and a great deal of debate has raged, on the effects of international trade and trade liberalization on the environment. Given that it is only recently that the General Agreement on Tariffs and Trade has begun to address the interdependence of the international economy and the international environment in a systematic way, it is likely that the debate will continue for quite some time. It will be argued that the economic case for there being benign environmental consequences associated with trade liberalization is flawed in important ways. This is due to statistical, empirical and conceptual issues which affect the estimation of such effects. Moreover, it will be argued that despite the intensity of the debate the effects of international trade on the environment have in fact only been addressed in an incidental manner. Rather, the debate has concentrated on factors that may coexist with trade, but not on the role of trade itself. This has served to obscure the more fundamental environmental effects of trade liberalization through the homogenization and specialization of ecosystems.

Comparative energy and environmental policy for the residential sector: applying Dutch standards to the UK housing stock

We analysed the effect of applying Dutch thermal efficiency standards of residential dwellings, conversion efficiency, appliance fuel mixes and appliance ownership rates, to the UK residential sector. We found that although aggregate energy consumption does not change significantly, pollution emissions are reduced significantly. Thus, the primary difference between housing and appliance stocks in the two regions is in terms of fuel mixes. However, improved thermal efficiency does allow for increased dwelling warmth without increasing emissions. Adapting Dutch standards in the UK would lead to a one-time improvement of the environmental situation, after which the trend is continued.

An empirical analysis of air pollution emissions policy for the U.K. residential sector

In this paper an analysis of the U.K. governments air pollution emissions policy for the residential sector is undertaken. The analysis covers emissions arising from water and space heating, electric appliances and cooking appliances. Using an integrated economic-engineering model, the effects of the Energy Savings Trust and the imposition of Value Added Tax on residential fuel will be evaluated in terms of energy consumption and pollution emissions. It is found that the initial proposed policy was not sufficiently stringent to meet the governments environmental objectives, and that subsequent events have undermined the governments programme even further. Unless alternative policies are introduced, emissions from the residential sector will play an important role in jeopardizing the ability of the U.K. government to meet its international obligations.