International Trade and Conservation with Costly Natural Resource Management
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.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (418) 656-2096
Fax: (418) 656-7412
Web page: http://www.green.ecn.ulaval.ca
More information through EDIRC
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.:
- 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.
- Hoel, Michael, 1978. "Extermination of Self-Reproducible Natural Resources under Competitive Conditions," Econometrica, Econometric Society, vol. 46(1), pages 219-24, January.
- 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.
- James A. Brander & M. Scott Taylor, 1996. "Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel," NBER Working Papers 5474, National Bureau of Economic Research, Inc.
- Rögnvaldur Hannesson, 2000. "Renewable resources and the gains from trade," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 122-132, February.
- 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.
- 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.
- Berck, Peter, 1979. "Open Access and Extinction," Econometrica, Econometric Society, vol. 47(4), pages 877-82, July.
- 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.
- James Brander & M. Scott Taylor, 1997.
"International Trade Between Consumer and Conservationist Countries,"
NBER Working Papers
6006, National Bureau of Economic Research, Inc.
- 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.
- Chichilnisky, G., 1993.
"North-South Trade and the Dynamics of Renewable Resources,"
93-15, Columbia - Graduate School of Business.
- Chichilnisky, Graciela, 1993. "North-South trade and the dynamics of renewable resources," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 219-248, December.
- 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.
- James A. Brander & M. Scott Taylor, 1995. "International Trade and Open Access Renewable Resources: The Small Open Economy Case," NBER Working Papers 5021, National Bureau of Economic Research, Inc.
- 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.
- 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.
- Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
- 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.
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 references are entirely missing, you can add them using this form.