C
certification the process of certifying products that meet certain standards, such as certifying produce grown using organic farming techniques.

comparative advantage the theory that trade benefits both parties by allowing each to specialize in goods they can produce with relative efficiency.

D
dualistic land ownership an ownership pattern, common in developing countries, where large landowners wield considerable power and small landowners tend to be displaced.

E
environmental externalities environmental impacts of an economic activity that are not reflected in the market costs or prices associated with the activity.

Environmental Kuznets Curve (EKC) the theory that a nation’s environmental impact increases in the early stages of economic development but eventually decreases above a certain level of income.

exporting pollution importing goods whose production involves environmental impact, thereby avoiding domestic impacts.

G
gains from trade the net social benefits that result from trade.

GATT Article XX the GATT provision stating that a country can restrict trade to conserve exhaustible natural resources or to protect human and animal life or health.

General Agreement on Tariffs and Trade (GATT) a multilateral trade agreement providing a framework for the gradual elimination of tariffs and other barriers to trade; the predecessor to the World Trade Organization.

global pollution/pollutant(s) pollutants that can have global impact such as carbon dioxide and chlorofluorocarbons (CFCs).

global public goods environmental goods or services that benefit all people, such as biodiversity and climate stabilization.

H
harmonization of environmental standards the equalization of environmental standards across countries, as in the European Union.

M
multilateral environmental agreements (MEAs) international treaties between nations on environmental issues, such as the Convention on International Trade in Endangered Species.

P
precautionary principle the view that policies should account for uncertainty by taking steps to avoid outcomes that are damaging to health or the environment, especially when such outcomes are irreversible.

process and production methods (PPM) rules international trade rules stating that an importing country cannot use trade barriers or penalties against another country for failure to meet environmental or social standards related to the process of production.

R
race to the bottom the tendency for nations to weaken national environmental standards to attract foreign businesses or to keep existing businesses from moving to other nations.

S
second-best solution a policy solution to a problem that fails to maximize potential net social benefits but may be appropriate if the optimal solution cannot be achieved.

specificity rule the view that policy solutions should be targeted directly at the source of a problem.

T
transboundary pollution pollution carried beyond the borders of a specific region or country and affecting those outside the region.

W
World Environmental Organization (WEO) a proposed international organization that would have oversight on global environmental issues.

World Trade Organization (WTO) an international organization dedicated to the expansion of trade through lowering or eliminating tariffs and nontariff barriers to trade.