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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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Cited by:
(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. 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!]
    Other versions:
  2. Gulati, Sumeet, 2001. "The Effects of Choosing Free Trade on Endogenous Environmental Regulation and Welfare: A Model of Common Agency Government," 2001 Annual meeting, August 5-8, Chicago, IL 20449, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. 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:
  4. Per G. Fredriksson & Muthukumara Mani, 2002. "The Rule of Law and the Pattern of Environment Protection," IMF Working Papers 02/49, International Monetary Fund. [Downloadable!]
  5. Alberto Gallegos & Pierre Regibeau, 2004. "Managed Trade, Trade Liberalisation and Local Pollution," Economics Discussion Papers 580, University of Essex, Department of Economics. [Downloadable!]
    Other versions:
  6. 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!]
    Other versions:
  7. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  8. repec:bep:eapadv:v:4:y:2004:i:2:p:1331-1331 is not listed on IDEAS
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This page was last updated on 2009-11-21.

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