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Trade and the enforcement of environmental property rights

Author

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  • Michael Francis

Abstract

This paper explores the relationship between trade and the regulation of what are otherwise open-access resources when enforcement of property rights is costly. When enforcement costs are significant, environmental property rights are only adopted and enforced when the potential resource rents exceed the regulatory cost. Since trade affects the magnitude of these rents, trade can affect the willingness to regulate. One of the most striking consequences of the presence of an enforcement cost is that the decision to liberalize trade, even at autarkic prices, can result in a switch in the regulatory regime and potentially reduce economic welfare.

Suggested Citation

  • Michael Francis, 2005. "Trade and the enforcement of environmental property rights," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(3), pages 281-298.
  • Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:281-298
    DOI: 10.1080/09638190500204169
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    References listed on IDEAS

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    1. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
    2. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    3. Cohen, Jon S. & Weitzman, Martin L., 1975. "A Marxian model of enclosures," Journal of Development Economics, Elsevier, vol. 1(4), pages 287-336, November.
    4. 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.
    5. Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
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    Citations

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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. 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).
    3. 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).
    4. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
    5. Brigitte Desroches & Michael Francis, 2006. "Institutional Quality, Trade, and the Changing Distribution of World Income," Staff Working Papers 06-19, Bank of Canada.
    6. 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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