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Environmental Preservation, Sectoral Unemployment, and Trade in Resources

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  • Chao, Chi-Chur
  • Kerkvliet, Joe R
  • Yu, Eden S H

Abstract

This paper develops a general equilibrium model to examine the optimal level of environmental preservation in terms of its costs and benefits for a closed as well as an open economy. The optimal preservation policy for a closed economy is to tax the general population and use the tax revenue to compensate affected workers. Furthermore, for a small open economy, free trade in resources can meet whatever shortage of domestic productive resources that may occur, thereby leading to a higher optimal level of environmental preservation. Copyright 2000 by Blackwell Publishing Ltd

Suggested Citation

  • Chao, Chi-Chur & Kerkvliet, Joe R & Yu, Eden S H, 2000. "Environmental Preservation, Sectoral Unemployment, and Trade in Resources," Review of Development Economics, Wiley Blackwell, vol. 4(1), pages 39-50, February.
  • Handle: RePEc:bla:rdevec:v:4:y:2000:i:1:p:39-50
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    Cited by:

    1. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany.
    2. Tohru Naito, 2013. "Privatization Of Public Firms And Urban Unemployment In An Integrated Economy," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(2), pages 93-106, July.
    3. Kenzo Abe & Muneyuki Saito, 2016. "Environmental Protection in the Presence of Unemployment and Common Resources," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 176-188, February.
    4. repec:wsi:serxxx:v:62:y:2017:i:02:n:s0217590815500642 is not listed on IDEAS
    5. Arief Anshory Yusuf, 2005. "Who Pay for the Cleaner Air? Distributional Impact of Environmental Policy in a Dualistic Economy," Working Papers in Economics and Development Studies (WoPEDS) 200502, Department of Economics, Padjadjaran University, revised Feb 2005.
    6. Ichiroh Daitoh & Nori Tarui, 2016. "Open-access Renewable Resources and Urban Unemployment: Dual Institutional Failures in a Small Open Economy," Keio-IES Discussion Paper Series 2016-009, Institute for Economics Studies, Keio University.
    7. Azusa Nakamura, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 585-593, August.

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