A note on trade liberalization and common pool resources
AbstractWhen countries share access to a common resource stock, optimal management is based on strategic considerations. We develop a general equilibrium model and show that regulatory policies are strategic substitutes under autarky. Trade liberalization not only changes relative prices, but may change the qualitative nature of the game between jurisdictions. In the small country case with exogenous prices, regulatory policies become strategic complements. In the context of a two-country model, policies remain strategic substitutes but the factors that drive policy changes differ from those under autarky and the small country case. The implications for conservation and resource management are discussed.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 38 (2005)
Issue (Month): 3 (August)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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- Bulte, E.H. & Damania, R., 2005. "A note on trade liberalization and common pool resources," Open Access publications from Tilburg University urn:nbn:nl:ui:12-165070, Tilburg University.
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- TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 09041, Research Institute of Economy, Trade and Industry (RIETI).
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