ABSTRACT

Environmental dumping (or eco-dumping) is defined as the use of lax environmental standards or poorly enforced regulations allowing the export of goods at a cost advantage or to attract foreign investments. The concept is used by critics of the effects of trade liberalization who consider the comparative advantage stemming from a low level of environmental protection to be unfair, since industries located in “pollution havens” do not bear the cost of environmental externalities, contrary to highstandards abiding industries (Hamilton 2001). This definition of environmental dumping must be distinguished from dumping as price discrimination-selling “below cost”—and from dumping as the export of hazardous waste (see Hazardous wastes regime).