This paper uses an economic perspective to analyze the WTO Panel and Appellate Body Reports regarding “Trade and Environment”. In particular, this paper focuses on a tendency that, when a country restricts international trade to protect the environment, the trade-restricting country puts a heavy burden on other countries because the measure-invoking country does not have an incentive to take into account the interests of other countries. This paper evaluates the use of judicial tests such as the “least trade restrictive alternative” test and the “means and ends” test by the Panel and the Appellate Body in terms of whether the invocation of these tests appropriately corrects the behavior of the measure-invoking countries. This paper also analyzes the essence/application dichotomy, which the Panel and the Appellate Body have invoked in the context of GATT Article XX interpretation, and the allocation of the burden of proof in the “trade and environment” cases. The paper concludes that, in general, the jurisprudence of the Panel and the Appellate Body is economically justifiable even though some modifications and clarifications should be done.