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International Trade Between Consumer and Conservationist Countries

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Author Info
James Brander
M. Scott Taylor

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Abstract

We consider trade between a consumer' country with an open access renewable resource and a conservationist' country that regulates resource harvesting to maximize domestic steady-state utility. In what we call the mild overuse' case, the consumer country exports the resource good and suffers steady-state losses from trade, as suggested by the conventional wisdom' that weak resource management standards confer a competitive advantage on domestic firms in the resource sector but cause welfare losses. Strikingly, however, when the resource stock is most in jeopardy, the conservationist country exports the resource good in steady state and both countries experience gains from trade.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6006.

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Date of creation: Apr 1997
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Publication status: published as Resource and Energy Economics, Vol. 19 (May 1997): 321-344.
Handle: RePEc:nbr:nberwo:6006

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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. Smith, Vernon L, 1971. "Economics of Production from Natural Resources: Reply," American Economic Review, American Economic Association, vol. 61(3), pages 488-91, June. [Downloadable!] (restricted)
  2. Brown, Gardner, Jr, 1974. "An Optimal Program for Managing Common Property Resources with Congestion Externalities," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 163-73, Jan.-Feb.. [Downloadable!] (restricted)
  3. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April. [Downloadable!] (restricted)
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  4. 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)
  5. Clarke, Harry R. & Reed, William J. & Shrestha, Ram M., 1993. "Optimal enforcement of property rights on developing country forests subject to illegal logging," Resource and Energy Economics, Elsevier, vol. 15(3), pages 271-293, September. [Downloadable!] (restricted)
  6. Chichilnisky, G., 1993. "Global Environment and North-South Trade," Papers 93-16, Columbia - Graduate School of Business.
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  7. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-40, Supplemen. [Downloadable!] (restricted)
  8. 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)
  9. Edward Barbier & Michael Rauscher, 1994. "Trade, tropical deforestation and policy interventions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(1), pages 75-90, February. [Downloadable!] (restricted)
  10. 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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  11. 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)
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(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. Shogren, Jason & Margolis, Michael, 2002. "Unprotected Resources and Voracious World Markets," Discussion Papers dp-02-30, Resources For the Future. [Downloadable!]
  2. Michael Francis, 2005. "Trade and the enforcement of environmental property rights," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 14(3), pages 281-298, September. [Downloadable!] (restricted)
  3. Xinpeng Xu, 1998. "International Trade and Environmental Policy: How Effective is 'Eco-Dumping'?," Trade Working Papers 436, East Asian Bureau of Economic Research. [Downloadable!]
  4. Bergeron, Nancy, 2002. "International Trade and Conservation with Costly Natural Resource Management," Cahiers de recherche 0204, GREEN. [Downloadable!]
  5. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Tragedy, and the Commons," NBER Working Papers 10836, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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