Ethics play an important role in society and are not merely characterized by logic or emotions. This chapter seeks to analyze the importance of ethics in economics by evaluating the shocking memorandum that the amount rational individuals in developed countries would be willing to pay to lessen their pollution is more than the amount that rational individuals in less developed countries (LDCs) would demand in order to accept more pollution, and that there would be more pollution in LDCs if pollution were easily exchangeable. In considering the aforementioned argument, the main topics covered are the economic benefits of exporting pollution to LDCs, where do ethics come in, and should the World Bank encourage migration of dirty industries to LDCs.
