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Transboundary Renewable Resource and International Trade

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  • TAKARADA Yasuhiro

Abstract

We develop a two-country, two-good model with a transboundary renewable resource. A transboundary renewable resource is an open-access resource that is shared by two countries. We characterize the autarkic steady state, then examine the patterns of trade and the post-trading steady-state utility levels. Although the resource stock is reduced by trade, both countries may still benefit from trade when they are specialized in production. We also show that the steady-state utility of a resource good importing country may be reduced by trade, even if it specializes in production of a non-resource good which we refer to as manufactures.

Suggested Citation

  • TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:09041
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    References listed on IDEAS

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    Cited by:

    1. Akihiho Yanase, 2013. "Free trade may save a renewable resource from exhaustion," Economics Bulletin, AccessEcon, vol. 33(1), pages 226-233.
    2. Akihiko Yanase & Weijia Dong, 2011. "Open-Access Renewable Resources as Inputs and International Trade: A Small Open Economy," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 18(3), pages 263-285.
    3. Yasuhiro Takarada & Takeshi Ogawa & Weijia Dong, 2012. "International Trade and Management of Shared Renewable Resource," ERSA conference papers ersa12p72, European Regional Science Association.
    4. 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).
    5. 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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