Forest sustainability and trade policies
AbstractMany analyses of trade and environment have concluded that trade liberalization is Pareto improvement with Pigovian tax systems even when production and consumption processes bring non-market externalities. But in case of global forest issue there are many accusations that the trade liberalization of forest products has caused the degradation of forest sustainability. In this paper we try to explain the gap between the theory and the real situation from theoretical point of view. We will analyze comprehensively about free trade and forest sustainability by partial and general equilibrium analyses. Pigovian systems work well under the assumption of complete substitutivity of consumption between external effects and marketable commodities. If it were not satisfied, it is inevitable to levy import tariff or to take some domestic price support systems to guide the production point into sustainable forests.
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Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 66 (2008)
Issue (Month): 4 (July)
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Web page: http://www.elsevier.com/locate/ecolecon
Forest Sustainability Free trade Import tariff General equilibrium model;
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- Shimamoto, Mihoko & Ubukata, Fumikazu & Seki, Yoshiki, 2004. "Forest sustainability and the free trade of forest products: cases from Southeast Asia," Ecological Economics, Elsevier, vol. 50(1-2), pages 23-34, September.
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- Dixit, Avinash & Norman, Victor, 1986. "Gains from trade without lump-sum compensation," Journal of International Economics, Elsevier, vol. 21(1-2), pages 111-122, August.
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