Trade Agreements Create Pollution Havens

Interesting paper out of the Berkeley Global Economy Journal
Trade Agreements and the Environment: An Industry Level Study for NAFTA
Raymond MacDermott. Global Economy Journal Volume 6, Issue 3 2006 Article 3

We find strong evidence of both the pollution-haven hypothesis and the positive impact of the NAFTA on FDI.  In addition, we find the trade agreement exacerbates the pollution-haven effect.  That is, the incentive to invest in countries with weak environmental regulations is greater under a trade agreement such as the NAFTA.  Surprisingly, stronger evidence of this effect is found in lower polluting industries than in higher polluting industries.

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    Asbestos stays off global dangerous-substance list

    NDP MP Pat Martin said Tuesday the Canadian delegation did not even participate in the discussions this year but got others to work on their behalf instead.

    He accused the Canadians of browbeating developing nations such as India, Pakistan and Vietnam — some of Canada's largest chrysotile customers — into opposing its inclusion on the list.

    "It's not a proud day for our country," said Martin, who attended the convention and spoke by telephone from Rome.

    via Chrysotile asbestos stays off global dangerous-substance list

    Canadians can now breathe easy. The government did not even have to oppose a notification officially, other countries did it for them.

  • U.S. "compromises"

    The head of the U.S. delegation — Under Secretary of State for Democracy and Global Affairs Paula Dobriansky — was booed Saturday afternoon when she announced that the United States was rejecting the plan as then written because they were “not prepared to accept this formulation.” She said developing countries needed to carry more of the responsibility. While rhetoric at such conferences is often just words, a short speech by a delegate from the small developing country of Papua New Guinea appeared to carry weight with the Americans. The delegate challenged the United States to “either lead, follow or get out of the way.”Just five minutes later, when it appeared the conference was on the brink of collapse, Dobriansky took to the floor again to announce the United States was willing to accept the arrangement. Applause erupted in the hall and a relative level of success for the conference appeared certain.

    U.S. agrees to Bali compromise – CNN.com

    Papua New Guinea, way to go!! Apparently, this administration can still “compromise”. Now the Bali talks are being called a success with all kinds of shenanigans happening on the last day. So, what did they compromise on?

    The EU wanted an agreement to require developed countries to cut their emissions by 25 to 40 percent of 1990 levels by 2020. The United States opposes those targets, along with Japan and Canada.

    The latest draft of the agreement removes the specific figures and instead, in a footnote, references the scientific study that supports them.

    While the EU and the United States appeared to have ended their impasse, India had objections to other parts of the agreement, notably the contributions developed nations would make to help developing nations clean up their emissions problems. Talks were expected to continue for several more hours.

    So, no mandatory cuts on the table, they agreed to talk some more in 2 years time. So, who will it be in 2009? President Clinton/Obama sending Al Gore for talks, or President Giuliani/Huckabee/Romney further stonewalling. Apparently, this US election is going to be pretty important as well!

    So, what does Nobel price winner Rajendra Pachauri think?

    “I wouldn’t term that a failure at all,” Pachauri said. “I think what would be a failure is not to provide a strong road map by which the world can move on, and I think that road map has to be specified with or without numbers. If we can come up with numbers, that’s certainly substantial progress, and I hope that happens.”

    I disagree. This is a numbers game. The damage caused by CO2 in the atmosphere is non-linearly proportional to the the amount in the atmosphere. The more you cut, the less damage you will cause later. At some number, the emission cuts may affect the lifestyles of certain countries. But to say that you don’t need numbers for success is just diplomatese.

    Note that Japan and Canada opposed cuts as well, but thanks to the exalted world leader position of the US, they can get away with little scorn.

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  • Canada and Climate Change Regulation – Politics as Usual

    Weasel (from wikipedia)

    *Weasel picture courtesy wikipedia

    “We need to hear more about the American position, the European position, the Chinese position” before considering the bill, McGuinty told CBC News.

    CBC

    With that rather weasely statement, Canada’s Liberal Party signalled that it will support a further delay in a vote that would set realistic limits on Canada’s Greenhouse gas emissions. I was too angry yesterday to write a decent post about it, but hey, as my partner often says, “Anger is a positive emotion”. So, here goes.

    What is it?
    Bill C-311 – The Climate Change Accountability Act. aims to set binding emission targets for greenhouse gas emissions (excluding land use, land use change and forestry) for Canada. Here’s the a short sentence from the preamble:

    this legislation is intended to ensure that Canada reduces greenhouse gas emissions to an extent similar to that required by all industrialized countries in order to prevent dangerous climate change, in accordance with the scientific evidence on the impacts of increased levels of global average surface temperature and the corresponding levels of atmospheric concentrations of greenhouse gases;

    Okay, ending a long sentence with a semi-colon, strange, but there it is, a very clear and concise statement of fact intending for Canada to set realistic targets for GHG reduction

    What are the targets?
    25% below 1990 levels by 2020, 80% below 1990 levels by 2050. This is in line with IPCC recommendations (pdf) (See page 776, thanks Climate Progress) to stabilize temperature rise to < 2°C and GHG concentrations to 450 ppm CO2 eq.
    Hansen, other prominent scientists and activists at 350.org have a more ambitious target in mind, 350 ppm. In comparison, proposed legislation by John Kerry and Barbara Boxer in the US senate would reduce GHG emissions by 20% from 1990 levels, and 80% by 2050. So, this bill proposes targets that are in line with what the world’s greatest polluter (per capita, historical) is proposing and current official consensus. There is a lot of small print in the exemptions, agriculture is a big one on the US side and land use and forestry appear to be a rather significant omission on the Canadian side.

    Bottom Line: The targets are exactly what is recommended by the IPCC, are reasonable and in line with what our biggest trading partner has proposed. They need to be strengthened in the near future, but are good for now.

    What it doesn’t do
    It does not establish a mechanism to bring about these reductions, only specifies that the government come up with scientifically sound interim targets and an emissions reduction regulatory strategy, be it emissions trading, or carbon taxes, etc. That’s fine, given Canada’s balance of powers and separation of province-federal powers, it would be best for an executive approach to regulation writing.

    History

    Bill C-311 is not new. An identical version passed the House of Commons in 2008 and was stymied by an election call. Since Canada has a bicameral legislature, the bill needed to be passed by the Canadian Senate as well and the election blocked this vote. Right now, it needs a vote to get out of committee and on the floor of the House.

    So what happened?
    Well, the NDP wanted to get the bill out for vote. The Bloc Quebecois supported them. The Conservatives, in a delaying tactic, wanted to extend the committee study period for another month, citing a “need for more expert testimony”, the Liberals agreed with them and the bill is stalled for now. Why? It is all politics.

    The Politics
    This is where the story gets interesting, and epitomizes everything that is wrong with Canada’s current political system! Canada is currently (since 2006 and 2 elections on), run by a minority Conservative government. Minority governments work very differently in Canada compared with typical parliamentary democracies such as India, Israel, etc. There are no coalitions, no alliances, especially now since the Conservative party is well to the right of every other party in Parliament. Canada has four other prominent parties, the Liberals, a centrist, business friendly party that has previously governed, the NDP, a left leaning union friendly party, the Green party, an environmental issues and good governance driven party (no seats in parliament), and the Bloc Quebecois, a regional party based in Quebec which wins seats only in Quebec.

    For the Conservative party to pass legislation, they need the support of one other party. Of course, to stymie legislation, they can use various parliamentary procedures. This is why C-311 is a private member’s bill, the government, which is vehemently opposed to any meaningful climate change mitigation regulation, would not bring something like this up for vote.

    The NDP would like to be responsible for meaningful regulation on climate change as it is in line with their stated principles and also neatly aligns with their desire to be seen as a serious opposition party, and as a party capable of governing at the federal level.

    The Liberals, well, they ran their last election on a radical restructuring of the Canadian tax system called the Green Shift. This envisaged a reduction in personal income taxes combined with the establishment of a carbon tax. The Liberals lost the election, and have been a lot more cautious about bringing up environmental issues. I happen to believe that the loss was primarily due to poor election strategy, a leader with the charisma of a freshly painted wall, and a flawed electoral system that allows for too much vote splitting, “wasted” votes and is unrepresentative. But, the media has run with the “it must be the environment” meme, and currently view any environmental legislation as a vote loser. This is in direct contradiction with polling data (pdf) that indicates the opposite to be true.

    Anyway, the Liberals appeared to be getting back into the energy game. Their dear leader Michael Ignatieff (@m_ignatieff) recently tweeted about a revolutionary new clean energy plan, which seems sensible enough and forward thinking. Also, the Liberals supported this identical bill last year, and until recently. Here’s the NDP with a collection of helpful quotes from the Liberals on C-311:

    “Parliamentarians don’t know where this country is going, as a sovereign nation state, on climate change. The really good news and the good faith behind Bill C-311 is helping to prompt a timely debate of where we’re going in advance of the important Copenhagen negotiation.” – David McGuinty, Environment Committee, June 18, 2009

    “[Bill C-311] has been reintroduced under a new MP, a bill that was put forward in the last Parliament by the leader of the NDP. As such, it really has no material changes compared to its predecessor bill.” –David McGuinty, Hansard, March 4, 2009

    “It’s very simple: we won’t be taken seriously until we are serious about the environment.” – Speech to the Vancouver Board of Trade, October 13, 2009 – MIchael Ignatieff

    Unfortunately, the price for success against the government in this half-assed minority government situation is likely an election! Opinion polls indicate that an election held today would likely result in very much the same situation as the last time around, maybe even an increased near majority for the Conservatives.

    Nanos_Oct22_poll_291448artw

    Image courtesy Globe and Mail

    The Conservatives (in blue) have a solid lead over the Liberals (Red) and the NDP (in orange) apparently have a 20% ceiling. In a normal parliamentary system, this would mean an alliance between the NDP and Liberals to win the election pretty handily (note that the votes would not additive, but there is a conservative vote ceiling around 40%). But as long as electoral reform is off the table, and the extremely hidebound Canadian mainstream media does nothing other than bemoan the lack of electoral participation while roundly condemning any alternative that would increase such participation, we are stuck with ths situation in which a Conservative government takes this country slowly rightward where it really does not want to be taken, given that solid majorities are against said conservative policies.

    In Conclusion
    Canada dithers again on climate change. To the core supporters of the Conservative party, this is as should be. However, for the majority of the country, for the international reputation of the country, and for the political system as a whole, this is an unacceptable delay. The Liberals win no friends by being indecisive and showing no leadership. The NDP is stuck with no amount of “responsible” opposition work giving it any traction in the polls, the political intelligentsia of Canada would not accept an NDP ascendancy. The political system does not reward cooperation. So, we remain stuck, a country of many beautiful words and very little action.

    Happy Friday!

    * – I like weasels!

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    Ethanol significantly worse than gasoline for air pollution

    So, Mark Jacobson from Stanford, an accomplished atmospheric chemist and modeler from Stanford, puts ethanol into his modeling mix as an automobile fuel and comes up with increased ozone, peroxyacetyl nitrate (PAN, an ozone precursor) and acetaldehyde, leading to a possible increase in mortality. Without reading his paper, I cannot comment on the assumptions used, but this is an additional issue to be concerned about as our politicians continue to binge on alcohol. It’s weird, almost as if there’s something intoxicating and addictive about this fuel :-;

    Effects of Ethanol E85 versus Gasoline Vehicles on Cancer and Mortality in the United States

    Ethanol use in vehicle fuel is increasing worldwide, but the potential cancer risk and ozone-related health consequences of a large-scale conversion from gasoline to ethanol have not been examined. Here, a nested global-through-urban air pollution/weather forecast model is combined with high-resolution future emission inventories, population data, and health effects data to examine the effect of converting from gasoline to E85 on cancer, mortality, and hospitalization in the United States as a whole and Los Angeles in particular. Under the base-case emission scenario derived, which accounted for projected improvements in gasoline and E85 vehicle emission controls, it was found that E85 (85% ethanol fuel, 15% gasoline) may increase ozone-related mortality, hospitalization, and asthma by about 9% in Los Angeles and 4% in the United States as a whole relative to 100% gasoline. Ozone increases in Los Angeles and the northeast were partially offset by decreases in the southeast. E85 also increased peroxyacetyl nitrate (PAN) in the U.S. but was estimated to cause little change in cancer risk. Due to its ozone effects, future E85 may be a greater overall public health risk than gasoline. However, because of the uncertainty in future emission regulations, it can be concluded with confidence only that E85 is unlikely to improve air quality over future gasoline vehicles. Unburned ethanol emissions from E85 may result in a global-scale source of acetaldehyde larger than that of direct emissions.

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    Pet Poisonings – A chemistry detective story

    Melamine in pet food may not be accidental – USATODAY.com

    A nitrogen-rich chemical used to make plastic and sometimes as a fertilizer may have been deliberately added to an ingredient in pet food that has sickened and killed cats and dogs across the country, public and private officials say. A leading theory is that it was added to fake higher protein levels.

    Melamine has been found in wheat gluten, rice protein concentrate and, in South Africa, corn gluten, all imported from China, and all meant for use in pet food, the Food and Drug Administration confirmed Thursday.

    “It adds to the theory when you see other products that are labeled as protein supplements, in this case rice protein, and in South Africa corn gluten and in the previous case wheat gluten,” said Stephen Sundlof, FDA chief veterinarian. “That melamine was found in all three of those, it would certainly lend credibility to the theory that this was intentional.”

    Interesting, apparently, melamine was added to increase the nitrogen content of the food so it would show up as protein in the most common protein test, which only looks for nitrogen. When I am not working, I guess I will look up the test details.

    I wonder if this is only the tip of the iceberg? What other techniques do food manufacturers use to fake it? Growing up, food adulteraion was a serious problem in India, and still continues to be an issue in the third world.

    More on this story to come, I am sure.

    One more thing that needs to be said is that the FDA has been very reactive, as opposed to proactive. This is partly because the FDA does not issue recalls, it first “strongly suggests” that the company involved recall whatver product it is that may be having issues. Only if this issue is not addressed can the FDA start seizure proceedings, which could take months. The FDa regulates and monitors on a company level, not at a product level.

    For example, when Japan had one sample of U.S beef test positive for mad cow disease, that was the end of beef imports from the U.S. This is an extreme case because you’re dealing with an infectious disease, but the point is that when you are finding huge levels of pesticide in food from a country, the first thing you need to do is stop everything, troubleshoot, then turn things back on again. Yes, this gets expensive, but so does 1000s of sick pets. The difference is, who pays. In the U.S, it’s always the consumer!

  • Pesticides

    farmerA friend pointed me in the direction of this letter by EPA union leaders about the upcoming re-registration of some very commonly used organophosphate and carbamate pesticides. This ens-newswire article provides an excellent summary.

    In the absence of “a robust body of data” the union leaders remind Johnson that the Food Quality Protection Act requires the EPA to use “an additional 10-fold safety factor in its risk assessments when setting pesticide tolerances.

    This is the key point, and the reason that Pesticide industry and the EPA came up with the infamous “CHEERS” study (talk about Kafkaesque naming!) to study children’s exposure knowing fully well that they would not be able to accurately assess health effects on children with an observational study. The hope was that using a short term “study” that assessed acute toxicity, they would be able to “prove” no significant harm to children and get rid of the safety factor. A factor of 10 is big, and the pesticide manufacturers hate it because the tolerances become low enough that people will be over-exposed.

    Isn’t that the whole point of a safety factor? We are still figuring out what happens at low levels of exposure to certain pesticides. This is truly an Environmental Justice issue. It is not the children of EPA administrators eating non-organic fruits and veggies that are going to be exposed. The gains from eating organic food vs. non-organic are dwarfed by the incidental exposure of the families of farmworkers and other people applying pesticides. Yes, you guessed it, they do not tend to be particularly rich or influential, but they are most in need of protection from government to ensure that their children do not get exposed to levels that may be harmful. This is not about shopping at Whole Foods, which is where most of elite America hears about pesticides, this is about the people being exposed to much higher doses. The safety factor is a must to keep them safe.