Common ground between free-traders and environmentalists
We use a North-South model with property right differences and resource dynamics to study the effects of trade on resource use and welfare. Autarky is likely to Pareto-dominate free trade in the long run when the environment is quite fragile, and the result is reversed when the environment is quite resilient. Trade may cause an environmentally poor country to "drag down" its richer trading partner, when they degrade their stocks which would be preserved under autarky. It may enable the environmentally richer country to "pull up" its partner, when they preserve their stocks which would be degraded under autarky.
(This abstract was borrowed from another version of this item.)
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- Karp, Larry & Sacheti, Sandeep & Zhao, Jinhua, 2001. "Common Ground between Free-Traders and Environmentalists," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(3), pages 617-647, August.
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- Karp, Larry & Sacheti, Sandeep, 1997. "Common Ground Between Free-traders and Environmentalists," CEPR Discussion Papers 1598, C.E.P.R. Discussion Papers.
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- F1 - International Economics - - Trade
- O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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- repec:esx:essedp:580 is not listed on IDEAS
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