This excellent video done by the Mercatus Center answers some basic questions: Is free trade good for the environment? Many environmental problems become better as a country increases its wealth. More resources are dedicated to taking care of the environment, and citizens of wealthier countries tend to prefer to live in a cleaner environment. There are, however, a small number of environmental problems that become worse as countries produce more, namely an increase in carbon emissions. This video also covers Kuznet’s Curve, technique vs. composition effects, scale effects, private vs. social costs of production, and whether companies in wealthier countries outsource pollution.