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Dynamic analysis of a renewable resource in a small open economy: The role of environmental policies for the environment

Author

Listed:
  • Koichi Futagami

    () (Graduate School of Economics, Osaka University)

  • Yasuhiro Nakamoto

    () (Faculty of Economics, Kyushu Sangyo University)

Abstract

We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural resource to preserve it. In the setup, using a phase diagram, we show how the environmental policies affect the natural resource and the domestic economy.

Suggested Citation

  • Koichi Futagami & Yasuhiro Nakamoto, 2010. "Dynamic analysis of a renewable resource in a small open economy: The role of environmental policies for the environment," Discussion Papers in Economics and Business 10-21, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:1021
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Renewable resources; The effects of environmental policies.;

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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