IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

International Trade and Conservation with Costly Natural Resource Management

  • Bergeron, Nancy
Registered author(s):

    We propose a model where the benevolent resource planner's management is endogenous. This allows for the analysis of trade models with management régimes other than the polar open access and 1st best régimes. Interestingly, 2nd best, endogenous, management régimes are more realistic than the textbook 1st best policy prescription. In a very simple model where current gains do not depend on the resource stock, and where resource management incurs a fixed cost, we have disproved, some statements made by the WTO. Indeed, in our 2nd best setting, free trade with "proper" management of resources can lead to welfare losses. It can also cause the extinction of a species and therefore hinder the environment. Further research is underway with more general assumptions. We expect that our results regarding WTO statements and questions will be mitigated, but they should still hold true under some conditions. We know that trade can be welfare increasing and it can help the environment. However, knowing when it does not and why can be helpful for policy-making. This is what we attempt to figure out in this paper.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Our checks indicate that this address may not be valid because: 404 Not Found ( [301 Moved Permanently]--> If this is indeed the case, please notify (Johanne Perron)

    Download Restriction: no

    Paper provided by GREEN in its series Cahiers de recherche with number 0204.

    in new window

    Date of creation: 2002
    Date of revision:
    Handle: RePEc:lvl:lagrcr:0204
    Contact details of provider: Postal: Bureau 2245, Pavillon J.-A.-DeSève, Québec (Québec) G1K 7P4
    Phone: (418) 656-2096
    Fax: (418) 656-7412
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Gould, J R, 1972. "Extinction of a Fishery by Commercial Exploitation: A Note," Journal of Political Economy, University of Chicago Press, vol. 80(5), pages 1031-38, Sept.-Oct.
    2. Hoel, Michael, 1978. "Extermination of Self-Reproducible Natural Resources under Competitive Conditions," Econometrica, Econometric Society, vol. 46(1), pages 219-24, January.
    3. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
    4. Rögnvaldur Hannesson, 2000. "Renewable resources and the gains from trade," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 122-132, February.
    5. Ali Emami & Richard S. Johnston, 2000. "Unilateral Resource Management in a Two-Country General Equilibrium Model of Trade in a Renewable Fishery Resource," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 161-172.
    6. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
    7. Berck, Peter, 1979. "Open Access and Extinction," Econometrica, Econometric Society, vol. 47(4), pages 877-82, July.
    8. Cropper, M. L. & Lee, Dwight R. & Pannu, Sukhraj Singh, 1979. "The optimal extinction of a renewable natural resource," Journal of Environmental Economics and Management, Elsevier, vol. 6(4), pages 341-349, December.
    9. James Brander & M. Scott Taylor, 1997. "International Trade Between Consumer and Conservationist Countries," NBER Working Papers 6006, National Bureau of Economic Research, Inc.
    10. Chichilnisky, G., 1993. "North-South Trade and the Dynamics of Renewable Resources," Papers 93-15, Columbia - Graduate School of Business.
    11. 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.
    12. Hotte, Louis & Long, Ngo Van & Tian, Huilan, 2000. "International trade with endogenous enforcement of property rights," Journal of Development Economics, Elsevier, vol. 62(1), pages 25-54, June.
    13. Levhari, David & Michener, Ron & Mirman, Leonard J, 1981. "Dynamic Programming Models of Fishing: Competition," American Economic Review, American Economic Association, vol. 71(4), pages 649-61, September.
    14. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
    15. Copeland, Brian R & Taylor, M Scott, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 755-87, August.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:lvl:lagrcr:0204. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.