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International trade and renewable resources under asymmetries of resource abundance and resource management

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  • Naoto Jinji

Abstract

This paper examines the interaction between relative resource abundance and resource management regimes in determining trade patterns and gains from trade in a two-country model with a renewable resource. A model developed by Brander and Taylor [Brander JA, Taylor MS (1997b) Resour Energy Econ 19:267–297] is extended. It is shown that relative resource abundance determines trade patterns if resource abundance is similar in both countries and the relative demand for the resource good is moderate, or if resource abundance is sufficiently different and the relative demand is not so high. Otherwise, a difference in resource management regimes determines trade patterns. Even under an open-access regime, the resource-scarce country gains from trade unless resource abundance is similar and the relative demand is low. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Naoto Jinji, 2007. "International trade and renewable resources under asymmetries of resource abundance and resource management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(4), pages 621-642, August.
    • Handle: RePEc:kap:enreec:v:37:y:2007:i:4:p:621-642
    DOI: 10.1007/s10640-007-9080-0
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    Citations

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    Cited by:

    1. Benchekroun, Hassan & Ray Chaudhuri, Amrita & Tasneem, Dina, 2020. "On the impact of trade in a common property renewable resource oligopoly," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    2. Akihiho Yanase, 2013. "Free trade may save a renewable resource from exhaustion," Economics Bulletin, AccessEcon, vol. 33(1), pages 226-233.
    3. JINJI Naoto, 2007. "Illegal Extractions of Renewable Resources and International Trade with Costly Enforcement of Property Rights," Discussion papers 07011, Research Institute of Economy, Trade and Industry (RIETI).
    4. Beatrix Gaitan & Terry Roe, 2012. "International Trade, Exhaustible-Resource Abundance and Economic Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(1), pages 72-93, January.
    5. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
    6. Gang Li & Akihiko Yanase, 2022. "Trade, Resource Use and Pollution: A Synthesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 861-901, November.
    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. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
    9. Robbert Maseland, 2009. "Trade in a world with recyclable resources," DEGIT Conference Papers c014_008, DEGIT, Dynamics, Economic Growth, and International Trade.
    10. Moon, Wanki, 2011. "Is agriculture compatible with free trade?," Ecological Economics, Elsevier, vol. 71(C), pages 13-24.
    11. Yasuhiro Takarada & Takeshi Ogawa & Weijia Dong, 2012. "International Trade and Management of Shared Renewable Resource," ERSA conference papers ersa12p72, European Regional Science Association.
    12. Yasuhiro Takarada & Weijia Dong & Takeshi Ogawa, 2020. "Shared renewable resources and gains from trade under technology standards," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 546-568, May.
    13. TAKARADA Yasuhiro, 2010. "Shared Renewable Resource and International Trade: Technical measures for fisheries management," Discussion papers 10035, Research Institute of Economy, Trade and Industry (RIETI).
    14. 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.

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    More about this item

    Keywords

    International trade; Open access; Relative resource abundance; Renewable resources; Resource management regime; F10; Q20;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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