By Hermann Glaser
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In contrast, national environmental resources are in essence arbitrary divisions of a global biosphere. The degree of "openness" is more an ecological and environmental attribute or endowment, and less a matter of policy discretion. A country cannot control transnational pollution and the quality of its environment as easily as it controls trade at its border. Put somewhat differently, economic activity by one country can have an environmental impact on others either directly through transboundary pollution and use of international common property resources such as the oceans, or indirectly, through trade.
This answer leads to a discussion of concepts of value, and of techniques for placing monetary values on environmental services. The second policy question, addressed in Chapter 6, is what instruments for environmental protection should governments employ? The range is from environmental zoning to so-called "command and control" measures (for example, physical-effluent and emission standards) to market-friendly measures such as taxes and tradeable permit systems. Taken together, Chapters 2 to 6 are a primer on environmental economics and policy and pave the way for international analysis.
Between 1904 and 1930, seven multipurpose water authorities were created in the Ruhr area of Germany (Kneese and Bower 1968). Transboundary air pollution led to the Trial Smelter dispute between the United States and Canada in the 1930s and its resolution is regarded as a major benchmark in the evolution of international environmental law. With respect to conserving international resources, the threat posed by longdistance trawler fleets led to the North Sea Fisheries Convention as early as 1882.