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Renewable Resources, Pollution and Trade in a Small Open Economy

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Author Info
Horatiu A. Rus (University of British Columbia)

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Abstract

Industrial pollution can have damaging effects on resource-based productive sectors. International trade creates opportunities for overexploitation of the open-access renewable resources but also for separating the sectors spatially. The paper shows that, depending on the relative damage inflicted by the two industries on the environment, it is possible that the production externality will persist and that specialization in the dirty good may not be the obvious choice from a welfare perspective. Also, the resource exporter does not necessarily have to lose from trade even when specializing incompletely, due to the partially offsetting external effects.

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File URL: http://www.feem.it/NR/rdonlyres/3C2EC953-6433-40F1-AE1F-86ADFACA962C/2168/14006.pdf
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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.140.

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Date of creation: Nov 2006
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Handle: RePEc:fem:femwpa:2006.140

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Related research
Keywords: Renewable Resources; Pollution; Production Externalities; Environment; International Trade;

Find related papers by JEL classification:
Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Renewable Resources and Conservation: Issues in International Trade
Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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This page was last updated on 2009-11-6.

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