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Common Ground between Free-Traders and Environmentalists

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Author Info
Karp, Larry
Sacheti, Sandeep
Zhao, Jinhua

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Abstract

We use a North-South model with property right differences and resource dynamics to study the effects of trade on resource use and welfare. Autarky is likely to Pareto-dominate free trade in the long run when the environment is quite fragile, and the result is reversed when the environment is quite resilient. Trade may cause an environmentally poor country to "drag down" its richer trading partner, when they degrade their stocks which would be preserved under autarky. It may enable the environmentally richer country to "pull up" its partner, when they preserve their stocks which would be degraded under autarky.

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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 42 (2001)
Issue (Month): 3 (August)
Pages: 617-47
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Handle: RePEc:ier:iecrev:v:42:y:2001:i:3:p:617-47

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Anderson, Kym, 1993. "Economic Growth, Environmental Issues and Trade," CEPR Discussion Papers 830, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Newbery, David M G & Stiglitz, Joseph E, 1984. "Pareto Inferior Trade," Review of Economic Studies, Blackwell Publishing, vol. 51(1), pages 1-12, January. [Downloadable!] (restricted)
  3. Chichilnisky, Graciela, 1993. "North-South trade and the dynamics of renewable resources," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 219-248, December. [Downloadable!] (restricted)
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  4. Low, P., 1992. "International Trade and the Environment," World Bank - Discussion Papers 159, World Bank.
  5. 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. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Larry Karp, 2003. "Property rights, mobile capital, and comparative advantage," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 942, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
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  2. Pierre Regibeau & Alberto Gallegos, 2004. "Managed Trade, Trade Liberalisation and Local Pollution," Advances in Economic Analysis & Policy, Berkeley Electronic Press, vol. 4(2), pages 1331-1331. [Downloadable!] (restricted)
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  3. Karp, Larry & Zhao, Jinhua & Sacheti, Sandeep, 1999. "The Uncertain Benefits of Environmental Reform in Open Economies," Staff General Research Papers 4043, Iowa State University, Department of Economics. [Downloadable!]
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  4. Larry Karp & Jinhua Zhao & Sandeep Sacheti, 2000. "The Long-Run Effects of Environmental Reform in Open Economies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 818, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
    Other versions:
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