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A note on trade liberalization and common pool resources


  • Erwin Bulte
  • Richard Damania


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.

Suggested Citation

  • Erwin Bulte & Richard Damania, 2005. "A note on trade liberalization and common pool resources," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 883-899, August.
  • Handle: RePEc:cje:issued:v:38:y:2005:i:3:p:883-899

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    References listed on IDEAS

    1. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-552, August.
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    Cited by:

    1. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
    2. Yasuhiro Takarada & Takeshi Ogawa & Weijia Dong, 2012. "International Trade and Management of Shared Renewable Resource," ERSA conference papers ersa12p72, European Regional Science Association.
    3. 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.
    4. Yasuhiro Takarada & Weijia Dong & Takeshi Ogawa, 2013. "Shared Renewable Resources: Gains from Trade and Trade Policy," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 1032-1047, November.
    5. Horatiu Rus, 2012. "Transboundary Marine Resources and Trading Neighbours," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(2), pages 159-184, October.
    6. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
    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.
    8. Basak Bayramoglu & Brian Copeland & Jean-François Jacques, 2016. "Trade and Fisheries Subsidies," Working Papers 2016.08, FAERE - French Association of Environmental and Resource Economists.

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