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Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel

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Author Info
James A. Brander
M. Scott Taylor

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Abstract

This paper develops a two-good, two-country model with national open access renewable resources. We derive an appropriate analog of `factor proportions' for the renewable resource case and link it to trade patterns and to the likelihood of diversified production. The resource importer gains from trade. However, a diversified resource exporting country necessarily suffers a decline in steady state utility resulting from trade, and may lose along the entire transition path. Thus the basic `gains from trade' presumption is substantially undermined by open access resources. Tariffs imposed by the resource importing country always benefit the resource exporter, and may be pareto-improving.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5474.

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Date of creation: Mar 1996
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Publication status: published as Journal of International Economics, Vol. 44, no. 2 (April 1998): 181-210.
Handle: RePEc:nbr:nberwo:5474

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Find related papers by JEL classification:
F1 - International Economics - - Trade
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

References listed on IDEAS
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  1. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September. [Downloadable!] (restricted)
  2. Baldwin, Richard E, 1992. "Measurable Dynamic Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 162-74, February. [Downloadable!] (restricted)
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  3. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September. [Downloadable!] (restricted)
  4. Copeland, Brian R & Taylor, M Scott, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 755-87, August. [Downloadable!] (restricted)
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  5. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-40, Supplemen. [Downloadable!] (restricted)
  6. McRae, James J., 1978. "Optimal and competitive use of replenishable natural resources by open economies," Journal of International Economics, Elsevier, vol. 8(1), pages 29-54, February. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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  8. Deardorff, Alan V, 1973. "The Gains from Trade in and out of Steady-state Growth," Oxford Economic Papers, Oxford University Press, vol. 25(2), pages 173-91, July. [Downloadable!] (restricted)
  9. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-37, September. [Downloadable!] (restricted)
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  10. Deardorff, Alan V., 1994. "The possibility of factor price equalization, revisited," Journal of International Economics, Elsevier, vol. 36(1-2), pages 167-175, February. [Downloadable!] (restricted)
  11. James R. Markusen, 1976. "Production and Trade from International Common Property Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 309-19, May. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Angelo Antoci & Paolo Russu & Elisa Ticci, 2008. "Distributive impact of structural change: does environmental degradation matter?," Working Papers Series wp2008_07.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze Economiche. [Downloadable!]
  2. Shogren, Jason & Margolis, Michael, 2002. "Unprotected Resources and Voracious World Markets," Discussion Papers dp-02-30, Resources For the Future. [Downloadable!]
  3. Francisco Cabo & Guiomar Martín-Herrán, 2006. "North–South transfers vs biodiversity conservation: a trade differential game," The Annals of Regional Science, Springer, vol. 40(2), pages 249-278, June. [Downloadable!] (restricted)
  4. Priya Ranjan & Baishali Bakshi, 2006. "Corruption, Environmental Resources, and International Trade," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 6(1), pages 1515-1515. [Downloadable!] (restricted)
  5. James Brander & M. Scott Taylor, 1997. "International Trade Between Consumer and Conservationist Countries," NBER Working Papers 6006, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Med KECHIDI (LEREPS-GRES), 2008. "Aeronautical manufacturer versus architect-integrator: a new industrial model for Airbus (In French)," Working Papers of GRES - Cahiers du GRES 2008-11, Groupement de Recherches Economiques et Sociales. [Downloadable!]
  7. F. Cabo & E. Escudero & G. Martín-Herrán, 2002. "Towards an ecological technology for global growth in a North-South trade model," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 11(1), pages 15-41, March. [Downloadable!] (restricted)
  8. Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2005. "Globalization and Domestic Conflict," International Trade 0507005, EconWPA. [Downloadable!]
    Other versions:
  9. Angelo Antoci & Paolo Russu & Elisa Ticci, 2008. "Structural Change, Environment and Well-being: Interactions Between Production and Consumption Choices of the Rich and the Poor in Developing Countries," Working Papers 2008.48, Fondazione Eni Enrico Mattei. [Downloadable!]
  10. Bergeron, Nancy, 2002. "International Trade and Conservation with Costly Natural Resource Management," Cahiers de recherche 0204, GREEN. [Downloadable!]
  11. Karp, Larry & Zhao, Jinhua & Sacheti, Sandeep, 1999. "The Uncertain Benefits of Environmental Reform in Open Economies," Staff General Research Papers 4043, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
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