Protection of the Environment, Trade and India’s Leather Exports

Abstract

The rationale for international trade stems from distinctive national endowments that lead to differences in comparative advantage. Theoretically, countries sell goods whose production costs are lower than others and purchase goods they cannot produce as efficiently as others. However the significance that different countries assign to environmental costs in the production process varies greatly and is dependent on a number of factors. One of the principal determinants is the level of income. Generally, the higher the income, the greater the concern for the environment.

This chapter represents the author’s opinions and does not reflect the Government of India’s views on the subject.