Sustainability and international trade in resources
AbstractThis 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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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 712.
Date of creation: 1995
Date of revision:
international trade; factor mobility; sustainability; international environmental problems;
Find related papers by JEL classification:
- F20 - International Economics - - International Factor Movements and International Business - - - General
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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.:
- 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.
- Geldrop, J. van & Withagen, C.A.A.M., 1993. "General equilibrium and international trade with exhaustible resources," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3107034, Tilburg University.
- Lars E.O. Svensson, 1982.
"Factor Trade and Goods Trade,"
NBER Working Papers
0999, National Bureau of Economic Research, Inc.
- 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.
- 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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