ABSTRACT
Pollution and environmental controls have been one of the major issues faced by many nations, and particularly industrialized ones. In tackling this very controversial problem, nations have created laws and regulations which concern both consumers and producers, directly or indirectly. It is well known from economic analysis that there are interactions among the industries. The output of an industry might be utilized as the necessary inputs by other industries. If the production of an industry needs input from other industries, then the industries become interdependent. The magnitude of the overall environmental control loading differences between the two trading partners varies. In respect to imports, environmental control costs show a similar pattern. Again, the environmental costs of the US imports are higher than those of German imports with respect to both bilateral and total trade. The environmental cost of the US imports is 53.75 percent greater than the environmental control cost of German imports from the United States.
