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A note on trade liberalization and common pool resources

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  • Bulte, E.H.

    (Tilburg University)

  • Damania, R.

Abstract

When countries share access to a common resource stock, optimal management is based on strategic considerations. We develop a general equilibrium model and show that regulatory policies are strategic substitutes under autarky. Trade liberalization not only changes relative prices, but may change the qualitative nature of the game between jurisdictions. In the small country case with exogenous prices, regulatory policies become strategic complements. In the context of a two-country model, policies remain strategic substitutes but the factors that drive policy changes differ from those under autarky and the small country case. The implications for conservation and resource management are discussed.

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-165070.

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Date of creation: 2005
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Publication status: Published in The Canadian Journal of Economics (2005) v.38, p.883-899
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-165070

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Web page: http://www.tilburguniversity.edu/

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Cited by:
  1. Klarl, Torben, 2011. "Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48714, Verein für Socialpolitik / German Economic Association.
  2. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
  3. Yasuhiro Takarada & Takeshi Ogawa & Weijia Dong, 2012. "International Trade and Management of Shared Renewable Resource," ERSA conference papers ersa12p72, European Regional Science Association.
  4. Horatiu Rus, 2012. "Transboundary Marine Resources and Trading Neighbours," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 53(2), pages 159-184, October.
  5. Torben Klarl, 2013. "Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 861-888, September.
  6. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
  7. Yasuhiro Takarada & Weijia Dong & Takeshi Ogawa, 2011. "Shared Renewable Resource and International Trade: Technical Measures for Resource Management," ERSA conference papers ersa11p449, European Regional Science Association.

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