CIESIN Thematic Guides

Harmonization of Environmental Standards

Harmonization refers to the process through which environmental standards in different countries are brought to similar levels. This process can become an issue in trade, because higher environmental standards may impose costs on manufacturers or other goods producers. Trade disadvantages could result for countries where more stringent standards increase the price of goods compared to that in countries with less restrictive environmental standards. Stevens (1993) examines various approaches to harmonization and their possible impact on trade and environmental policies in "Harmonization, Trade and the Environment."

The Organization for Economic Cooperation and Development (OECD) and the European Union (EU) (formerly the European Community) have both actively promoted harmonized environmental standards. de Miramon and Stevens (1992) discuss OECD harmonization efforts in "Policy Balance." A U.S. Office of Technology Assessment (1992) report section from Trade and the Environment: Conflicts and Opportunities recounts EU activities related to harmonization. A criticism of harmonization is that it could yield a lowest common denominator of national environmental standards, rather than a raising of standards. Shrybman (1990) evaluates possible effects of lowest common denominator harmonization in "International Trade: In Search of an Environmental Conscience."