Ecologically Unequal Exchange and the Resource Consumption/Environmental Degradation Paradox A Panel Study of Less-Developed Countries, 1970-2000

Ecologically unequal exchange theory posits that the vertical flow of exports is a structural mechanism allowing for more-developed countries to partially externalize their consumption-based environmental impacts to lesser-developed countries. It is argued that these structural relationships contribute to environmental degradation in the latter while directly suppressing resource consumption opportunities for domestic populations, often well below globally sustainable thresholds. To assess the validity of the propositions, the authors conduct fixed effects and random effects panel regression analyses of the effects of the vertical flow of primary sector exports on deforestation and a refined per capita footprint measure for two samples of less-developed countries, 1970-2000. Results support the stated arguments of ecologically unequal exchange theory and point to the need for more rigorous comparative analyses to increase our collective understanding of the environmental and human well-being consequences of such relationships for less-developed countries.