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Sustainability and international trade in resources

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  • Klepper, Gernot
  • Stähler, Frank

Abstract

This paper discusses environmental policies which aim at a sustainable use of domestic resources which are mobile. It assumes that one country introduces such a policy but the other country does not. If a resource is mobile, strict domestic environmental policies may increase the resource imports from other countries. This paper shows that a unilateral environmental policy may even imply an increased resource use. In this case, a large part of the sustainability objective is met by substituting domestic resource extraction by imports. When sustainability is modelled in an inter temporal, competitive framework, the paper shows that the sustainability rule will not lead to a slower rate of extraction of the resource.

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File URL: http://econstor.eu/bitstream/10419/854/1/190955430.pdf
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 712.

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Date of creation: 1995
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Handle: RePEc:kie:kieliw:712

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Related research

Keywords: international trade; factor mobility; sustainability; international environmental problems;

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  1. van Geldrop, Jan H. & Withagen, Cees A. A. M., 1993. "General equilibrium and international trade with exhaustible resources," Journal of International Economics, Elsevier, vol. 34(3-4), pages 341-357, May.
  2. Lars E.O. Svensson, 1982. "Factor Trade and Goods Trade," NBER Working Papers 0999, National Bureau of Economic Research, Inc.
  3. Ulph, A., 1994. "Environmental policy and international trade: a survey of recent economic analysis," Discussion Paper Series In Economics And Econometrics 9423, Economics Division, School of Social Sciences, University of Southampton.
  4. Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
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