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Trade and the enforcement of environmental property rights

  • Michael Francis

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.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500204169
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Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 14 (2005)
Issue (Month): 3 ()
Pages: 281-298

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Handle: RePEc:taf:jitecd:v:14:y:2005:i:3:p:281-298
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  1. Brian R. Copeland & M. Scott Taylor, 2003. "Trade, Growth and the Environment," NBER Working Papers 9823, National Bureau of Economic Research, Inc.
  2. 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 526-52, August.
  3. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
  4. 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.
  5. Cohen, Jon S. & Weitzman, Martin L., 1975. "A Marxian model of enclosures," Journal of Development Economics, Elsevier, vol. 1(4), pages 287-336, November.
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