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Issues related to environmental protection and trade liberalization have moved to the forefront of international policy agendas. The Economics of International Trade and the Environment explores - from an economic standpoint - many of the questions that are germane in increasing our knowledge of environmental policy in the presence of international trade and trade policy in the presence of environmental externalities. Ultimately we must ask "What can economic theory tell us about the connections between environmental and trade policy?" This book uses the tools of game and microeconomic theory to analyze diverse issues such as: the effects of international trade in waste products on illegal disposal, the nature of environmental policy when market structure and plant locations are endogenous, and the issue of ecological dumping. The authors apply economic theory to practical settings to ascertain the extent to which this theory can inform policy decisions about problems at the interface of international trade and the environment. Edited by well-known researchers and authors, this is the only resource that can serve as an effective guide to the theoretical and empirical literature on international trade and the environment. The Economics of International Trade and the Environment provides comprehensive coverage on a wide variety of topics and contains the most recent contributions in this area and is suitable as a graduate course in Economics and International Trade