ABSTRACT
This chapter presents an overview of the key issues in the debate and makes some recommendations for policy changes. It provides discussion on the key problems in our ecolonomy, the need for international rules, the need for better international institutions, and some areas where caution is advised. The debate over the linkage of trade and the environment has provided a new window for understanding the exigencies of these dual goals. It has become increasingly apparent that the world economy and the global environment are connected. The new generation of environmental policies, which are market-friendly, are an example of how a closer connection between economics and environment can yield better outcomes. Increasing trade and safeguarding the environment are not generally inconsistent objectives. The world economy and the global environment are, to a large and probably ever-increasing extent, two sides of the same coin.
