ABSTRACT
This chapter attempts to cast some more light on the issue of ecological dumping. It examines economic motives underlying a government's decision to engage in ecological dumping. Environmental dumping characterises a situation in which a government uses lax environmental standards to support domestic firms in international markets. Low emission taxes and pollution-abatement requirements enable these firms to dump their goods into foreign markets at relatively low prices. Ecological dumping by employing lower environmental standards than the rest of the world can be a good thing and there is no need to rack one's brains about it as a problem. In the public opinion, the term 'ecological dumping' characterises a situation in which the environmental standards in one country are lower than those in other countries. A more promising approach to indentifying motives of ecological dumping is the consideration of sector-specific interest groups.
