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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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Handle: RePEc:nbr:nberwo:6006

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  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. 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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  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. 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)
  5. Chichilnisky, G., 1993. "Global Environment and North-South Trade," Papers 93-16, Columbia - Graduate School of Business.
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  6. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-40, Supplemen. [Downloadable!] (restricted)
  7. 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)
  8. 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)
  9. 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)
  10. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March. [Downloadable!] (restricted)
  11. Kemp, Murray C. & Van Long, Ngo, 1984. "The role of natural resources in trade models," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 8, pages 367-417 Elsevier. [Downloadable!] (restricted)
  12. 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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  13. 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)
  14. Munro, Gordon R. & Scott, Anthony D., 1985. "The economics of fisheries management," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 14, pages 623-676 Elsevier. [Downloadable!] (restricted)
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  1. Shogren, Jason & Margolis, Michael, 2002. "Unprotected Resources and Voracious World Markets," Discussion Papers dp-02-30, Resources For the Future. [Downloadable!]
  2. Gulati, Sumeet, 2001. "The Effects of Choosing Free Trade on Endogenous Environmental Regulation and Welfare: A Model of Common Agency Government," 2001 Annual meeting, August 5-8, Chicago, IL 20449, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2009. "International Trade and Transnational Insecurity: How Comparative Advantage and Power are Jointly Determined," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. Gulati, Sumeet, 2003. "The Effect Of Free Trade On Pollution Policy And Welfare," Working Papers 15849, University of British Columbia, Food and Resource Economics. [Downloadable!]
  5. Turner, James A. & Buongiorno, Joseph & Zhu, Shushuai, 2005. "Effects of the Free Trade Area of the Americas on Forest Resources," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), April. [Downloadable!]
  6. Cees A. Withagen & Raymond J.G.M. Florax & Abay Mulatu, 2007. "Optimal environmental policy differentials in open economies under emissions constraints," The School of Economics Discussion Paper Series 0701, Economics, The University of Manchester. [Downloadable!]
    Other versions:
  7. 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)
  8. Susana Ferreira, 2007. "Trade Policy and Natural Resource Use: The Case for a Quantitative Restriction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(2), pages 361-376, June. [Downloadable!] (restricted)
  9. Anriquez, Gustavo, 2002. "Trade And The Environment: An Economic Literature Survey," Working Papers 28598, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  10. Xinpeng Xu, 1998. "International Trade and Environmental Policy: How Effective is 'Eco-Dumping'?," Trade Working Papers 436, East Asian Bureau of Economic Research. [Downloadable!]
  11. Bergeron, Nancy, 2002. "International Trade and Conservation with Costly Natural Resource Management," Cahiers de recherche 0204, GREEN. [Downloadable!]
  12. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Tragedy, and the Commons," NBER Working Papers 10836, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Larson, Bruce, 2002. "European Union Environmental Policies And Imports Of Agricultural Products From The United States," 2002 Annual meeting, July 28-31, Long Beach, CA 19613, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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