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Unilateral Resource Management in a Two-Country General Equilibrium Model of Trade in a Renewable Fishery Resource

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  • Ali Emami
  • Richard S. Johnston
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    Abstract

    We explore the effects of free trade in a renewable natural resource between two countries in the presence of incomplete property rights. While resource management by one country may benefit one or both trading partners, we demonstrate that resource management by only one of the partners may reduce welfare for both, when compared to the case in which neither manages its resource sector. These trade-induced losses may be reduced through import tariffs and production subsidies on the resource good or by permitting harvest beyond the rent-maximizing level. Our preliminary work suggests that the World Trade Organization (WTO) and North American Free Trade Agreement (NAFTA) policy makers should not always insist on free trade and resource management. Rather, they must pay careful attention to the particular relationships between trade conditions and natural resource policies among trading nations. Copyright 2000, Oxford University Press.

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    File URL: http://hdl.handle.net/10.1111/0002-9092.00013
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    Bibliographic Info

    Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

    Volume (Year): 82 (2000)
    Issue (Month): 1 ()
    Pages: 161-172

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    Handle: RePEc:oup:ajagec:v:82:y:2000:i:1:p:161-172

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    Cited by:
    1. Bergeron, Nancy, 2002. "International Trade and Conservation with Costly Natural Resource Management," Cahiers de recherche 0204, GREEN.
    2. TAKARADA Yasuhiro, 2010. "Shared Renewable Resource and International Trade: Technical measures for fisheries management," Discussion papers 10035, Research Institute of Economy, Trade and Industry (RIETI).
    3. Yasuhiro Takarada & Weijia Dong & Takeshi Ogawa, 2011. "Shared Renewable Resource and International Trade: Technical Measures for Resource Management," ERSA conference papers ersa11p449, European Regional Science Association.
    4. Yasuhiro Takarada & Takeshi Ogawa & Weijia Dong, 2012. "International Trade and Management of Shared Renewable Resource," ERSA conference papers ersa12p72, European Regional Science Association.
    5. Eppink, Florian V. & van den Bergh, Jeroen C.J.M., 2007. "Ecological theories and indicators in economic models of biodiversity loss and conservation: A critical review," Ecological Economics, Elsevier, vol. 61(2-3), pages 284-293, March.
    6. Quaas, Martin F. & Stöven, Max T., 2014. "New trade in renewable resources and consumer preferences for diversity," Economics Working Papers 2014-08, Christian-Albrechts-University of Kiel, Department of Economics.
    7. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
    8. Naoto Jinji, 2007. "International trade and renewable resources under asymmetries of resource abundance and resource management," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(4), pages 621-642, August.
    9. 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.

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