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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 re- newable 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, 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-Rev., Osaka University, Graduate School of Economics, revised Sep 2014.
    • Handle: RePEc:osk:wpaper:1021r
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    Cited by:

    1. Yasuhiro Nakamoto & Akihiko Yanase, 2022. "Pollution externalities and corrective taxes in a dynamic small open economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(3), pages 667-703, June.
    2. Tsuboi, Mizuki, 2019. "Resource scarcity, technological progress, and stochastic growth," Economic Modelling, Elsevier, vol. 81(C), pages 73-88.
    3. Koichi Futagami & Yasuhiro Nakamoto, 2019. "The impacts of pollution control policies on the pollution in small open economies," Discussion Papers in Economics and Business 19-08, Osaka University, Graduate School of Economics.

    More about this item

    Keywords

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    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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