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Trade and the enforcement of environmental property rights

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  • Michael Francis

Abstract

This paper explores the relationship between trade and the regulation of what are otherwise open-access resources when enforcement of property rights is costly. When enforcement costs are significant, environmental property rights are only adopted and enforced when the potential resource rents exceed the regulatory cost. Since trade affects the magnitude of these rents, trade can affect the willingness to regulate. One of the most striking consequences of the presence of an enforcement cost is that the decision to liberalize trade, even at autarkic prices, can result in a switch in the regulatory regime and potentially reduce economic welfare.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500204169
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 14 (2005)
Issue (Month): 3 ()
Pages: 281-298

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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:281-298

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Related research

Keywords: International trade; environmental standards; open-access renewable resources;

References

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  1. Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
  2. Brian R. Copeland & M. Scott Taylor, 2003. "Trade, Growth and the Environment," NBER Working Papers 9823, National Bureau of Economic Research, Inc.
  3. James A. Brander & M. Scott Taylor, 1995. "International Trade and Open Access Renewable Resources: The Small Open Economy Case," NBER Working Papers 5021, National Bureau of Economic Research, Inc.
  4. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
  5. Cohen, Jon S. & Weitzman, Martin L., 1975. "A Marxian model of enclosures," Journal of Development Economics, Elsevier, vol. 1(4), pages 287-336, November.
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Cited by:
  1. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
  2. 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.
  3. Brigitte Desroches & Michael Francis, 2006. "Institutional Quality, Trade, and the Changing Distribution of World Income," Working Papers 06-19, Bank of Canada.
  4. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
  5. 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).
  6. JINJI Naoto, 2007. "Illegal Extractions of Renewable Resources and International Trade with Costly Enforcement of Property Rights," Discussion papers 07011, Research Institute of Economy, Trade and Industry (RIETI).

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