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Synopsis Recent years have witnessed the emergence of several environmental agreements, with trade-restricting provisions, extraneous to the GATT System. Widespread fears have also been expressed that trade liberalization and growth of global trade would cost heavy environmental damage and expanding environmental regulations would create new barriers for trade flows. The current prescriptions for solving these problems are utterly inadequate and do not recognize the basic cause of the crises. While there are economic links between environmental protection and trade, these need to be examined in a general equilibrium framework. The production of environmental goods will be accompanied by drawing resources from private sector economy that engages in the production of goods and services. Besides the environmental benefits, there will also be terms of trade and income effects that must be included in the evaluation of the environmental policies by the governments. In the studies on trade and environment very few results are qualitatively robust; of course there is a presumption that the lingages between trade and environmental policy are weak and also that trade policies are ineffective instruments of environmental protection, this was confirmed by the model-based estimates of trade-environment linkages. This volume brings together recent research work relating to the following elements of Trade and Environment debates: 1. Environment and Trade Policy; 2. Strategic Environment Policy; 3. Property Rights and Gains from Trade; 4. WTO and Trade-Environment Conflict; 5. Toxic Emissions and Standards; 6. Pollution Abatement and Comparative Advantage; 7. Internalisation of Environmental Costs; 8. Solutions for Sustainable Development; 9. New Environmental Order. This series is dedicated to Raul Prebisch who underlined the dynamics of the world economy and the interdependence between the industrial countries of the North and the LDCs of the South.