Environmental Improvements without Environmental Policies

This research paper examines the relationship between trade liberalization, economic growth, and environmental quality in Argentina during the 1990s. It argues that while the manufacturing sector saw little environmental improvement despite growth, the agricultural sector in the Pampas region experienced a 'virtuous cycle' where market-driven adoption of new technologies led to environmental benefits without the need for specific environmental policies.

• In the manufacturing sector, trade liberalization did not result in a 'cleaner' export pattern. High and medium-polluting sectors continued to dominate, accounting for 72% of manufactured exports in 1990 and 69% in 1997. For exports specifically destined for OECD countries, the share of high and medium-polluting sectors actually increased from 68% to 76% over the same period.
• Argentine manufacturing firms improved environmental management not due to policy, but as a cost-reducing strategy to better utilize resource inputs and residues. However, these improvements did not necessarily reduce absolute polluting emissions and remained below international standards, particularly for small and medium-sized enterprises.
• Agricultural production in the Pampas region grew significantly between 1988/99 and 1997/8, increasing from 26 million tons to 63 million tons. This growth involved a 30% expansion of acreage for wheat, corn, soya, and sunflower, primarily at the expense of cattle growing areas.
• The agricultural sector experienced a 'win-win' scenario where trade liberalization and market signals encouraged the adoption of conservationist techniques. Specifically, 'direct-sowing' grew from 300,000 hectares in 1990/91 to 5.5 million hectares in 1997/8, helping to fix approximately 100 million metric tons of carbon equivalent and reverse soil erosion.
• The adoption of Genetically Modified Organisms (GMOs) in the Pampas since 1997 is characterized as a positive externality. These varieties allowed for a lower quantity of agrochemicals and the use of herbicides that degrade rapidly, resulting in negligible impacts on water, soil, and the food chain.
• The environmental improvements in the Pampas agricultural sector occurred despite the impoverishment of social and institutional fabrics, contradicting the common theory that poverty and environmental degradation are inextricably linked in a vicious circle.

APA

Chudnovsky, D., Cap, E., Trigo, E., & Rubin, S. (1999). Environmental Improvements without Environmental Policies. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/xprt1990ssum_e.pdf

Chicago

Chudnovsky, Daniel, Eugenio Cap, Eduardo Trigo, and Sebastian Rubin. Environmental Improvements without Environmental Policies. International Institute for Sustainable Development, 1999. https://www.iisd.org/system/files/publications/xprt1990ssum_e.pdf.

Wikipedia

{{cite report |last1=Chudnovsky |first1=Daniel |last2=Cap |first2=Eugenio |last3=Trigo |first3=Eduardo |last4=Rubin |first4=Sebastian |title=Environmental Improvements without Environmental Policies |publisher=International Institute for Sustainable Development |date=1999 |url=https://www.iisd.org/system/files/publications/xprt1990ssum_e.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chudnovsky1999environmental, author = {Chudnovsky, Daniel and Cap, Eugenio and Trigo, Eduardo and Rubin, Sebastian}, title = {{Environmental Improvements without Environmental Policies}}, institution = {International Institute for Sustainable Development}, year = {1999}, url = {https://www.iisd.org/system/files/publications/xprt1990ssum_e.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }