jor markets for U.S. exports are forced to divert economic resources which could otherwise be used to build stronger economies or buy more American products (Esty 1997). Second, the damage that China is inflicting on itself gives rise to similar concerns. Given that China is expected to be an engine of growth for the Asia Pacific region as well as the rest of the world in the next century, the drag on China’s economic growth that environmental degradation will bring has serious implications for the American economy. Third, Thomas Homer-Dixon has written extensively on how resource scarcities can lead to regional instability by spurring transnational migrations or enticing nations to attempt to expand their territories (Homer-Dixon 1994, 540). In April 1996, U.S. Secretary of State Warren Christopher’s allusion to China’s “enormous environmental pressures” underscored fears in the region that resource scarcity within China translates into threat of war and conquest beyond its borders (A Greener China 1996). If such a conflict were to occur, American military and economic leadership would likely be required to bring about a peaceful resolution. What is ironic about the Three Gorges Dam debate is that the project is aimed partly at reducing China’s reliance on coal as an energy source. Therefore, at first glance the position taken by the Clinton administration seems to contradict its interest in promoting Chinese efforts to clean up the environment. However, it is important to clarify that the basis of the administration’s policy decision rests on concerns about the questionable benefits and likely costs of the megaproject, rather than disagreement over the need for cleaner sources of energy. If the United States has credible grounds to doubt the prudence of a project, it is within its rights and in its interests to make those doubts known and push for alternatives that it believes are more appropr...