ABSTRACT
As the world economy grows, it potentially consumes ever more resources and generates ever-larger pollution loads. Because trade enables the growth of the world economy, it is tempting to blame globalization for this relentless pressure on the environment. This chapter acknowledges the risks to the environment of globalization. However, it is important to also remember that economic stagnation and poverty also pose risks to the environment. Environmental protection requires extensive resources that only the richest countries in the world currently can afford. With worldwide economic growth, countries around the world will be able to afford more extensive environmental protection programs. Global economic growth will damage the environment if pollution and natural resources are not well protected. However, globalization will allow many currently impoverished regions to take active measures to protect their own environments—measures that they cannot afford today. Although development may entail an immediate loss of wildlands and an increase in pollution in some countries, it will also provide future wealth to address environmental issues in the long run. In the long run, development is necessary to finance environmental protection.
