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Triple win for trade in renewable resource goods by use of export taxes

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  • Flaaten, Ola
  • Schulz, Carl Erik
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    Abstract

    We challenge the free trade paradigm, in particular for developing countries exporting natural resource goods, by demonstrating positive economic and environmental effects of an export tax for renewable resource goods. The two-sector general equilibrium model designed has an open-access renewable resource industry and a manufacturing industry. The economic, environmental and social effects of using an export tax on goods from the open-access renewable resource industry are analysed. It is demonstrated that the gross domestic product, the steady-state resource stock and the domestic consumption of both products increase with the resource export tax compared to free trade with no trade taxes.

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    Bibliographic Info

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 69 (2010)
    Issue (Month): 5 (March)
    Pages: 1076-1082

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    Handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1076-1082

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    Web page: http://www.elsevier.com/locate/ecolecon

    Related research

    Keywords: Trade Export tax Renewable resource Open access Fisheries Development;

    References

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    1. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-52, August.
    2. Copes, Parzival, 1972. "Factor Rents, Sole Ownership and the Optimum Level of Fisheries Exploitation," The Manchester School of Economic & Social Studies, University of Manchester, vol. 40(2), pages 145-63, June.
    3. Nielsen, Max, 2006. "Trade liberalisation, resource sustainability and welfare: The case of East Baltic cod," Ecological Economics, Elsevier, vol. 58(3), pages 650-664, June.
    4. Urs Steiner Brandt & Niels Vestergaard, 2006. "Illegal Landings: An Aggregate Catch Self-Reporting Mechanism," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 974-985.
    5. Pomeroy, Robert & Thi Nguyen, Kim Anh & Thong, Ha Xuan, 2009. "Small-scale marine fisheries policy in Vietnam," Marine Policy, Elsevier, vol. 33(2), pages 419-428, March.
    6. Erwin Bulte & Edward Barbier, 2005. "Trade and Renewable Resources in a Second Best World: An Overview," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(4), pages 423-463, 04.
    7. Frank Asche & Ola Flaaten & John R. Isaksen & Terje Vassdal, 2002. "Derived Demand and Relationships between Prices at Different Levels in the Value Chain: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(1), pages 101-107.
    8. Raakjær, Jesper & Manh Son, Dao & Stæhr, Karl-Johan & Hovgård, Holger & Dieu Thuy, Nguyen Thi & Ellegaard, Kristine & Riget, Frank & Van Thi, Dang & Giang Hai, Phung, 2007. "Adaptive fisheries management in Vietnam: The use of indicators and the introduction of a multi-disciplinary Marine Fisheries Specialist Team to support implementation," Marine Policy, Elsevier, vol. 31(2), pages 143-152, March.
    9. Wilen, James E., 2000. "Renewable Resource Economists and Policy: What Differences Have We Made?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 306-327, May.
    10. Emran, M. Shahe, 2005. "Revenue-increasing and welfare-enhancing reform of taxes on exports," Journal of Development Economics, Elsevier, vol. 77(1), pages 277-292, June.
    11. Susana Ferreira, 2007. "Trade Policy and Natural Resource Use: The Case for a Quantitative Restriction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(2), pages 361-376, June.
    12. Rögnvaldur Hannesson, 2000. "Renewable resources and the gains from trade," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 122-132, February.
    13. repec:ags:mareec:47070 is not listed on IDEAS
    14. repec:ags:mareec:28264 is not listed on IDEAS
    15. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
    16. Parzival Copes, 1986. "A Critical Review of the Individual Quota as a Device in Fisheries Management," Land Economics, University of Wisconsin Press, vol. 62(3), pages 278-291.
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    Citations

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    Cited by:
    1. Louis Dupuy, 2012. "International Trade and Sustainability : A survey," Working Papers hal-00701426, HAL.
    2. Liaila Tajibaeva, 2012. "Property Rights, Renewable Resources and Economic Development," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(1), pages 23-41, January.
    3. repec:laf:wpaper:201201 is not listed on IDEAS
    4. Olga Solleder, 2013. "Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates," IHEID Working Papers 07-2013, Economics Section, The Graduate Institute of International Studies, revised 04 Apr 2013.
    5. Louis Dupuy, 2012. "International Trade and Sustainability: A survey," Larefi Working Papers 1201, Larefi, Université Bordeaux 4.

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