Common ground between free-traders and environmentalists
Common ground between free-traders and environmentalists
We use a North–South model with property right differences and resource dynamics to study the effects of trade on resource use and welfare. Autarky is likely to Pareto-dominate free trade in the long run when the environment is quite fragile, and the result is reversed when the environment is quite resilient. Trade may cause an environmentally poor country to “drag down” its richer trading partner, when they degrade their stocks which would be preserved under autarky. It may enable the environmentally richer country to “pull up” its partner, when they preserve their stocks which would be degraded under autarky.
617-648
Karp, L.S.
261a5c1b-3f91-478a-bf2e-62793dba16fb
Sacheti, S.
fd06f821-5648-4153-9c17-676e8416afcf
Zhao, J.
5807b9d4-d0e4-4992-a69b-c276636c1691
2001
Karp, L.S.
261a5c1b-3f91-478a-bf2e-62793dba16fb
Sacheti, S.
fd06f821-5648-4153-9c17-676e8416afcf
Zhao, J.
5807b9d4-d0e4-4992-a69b-c276636c1691
Karp, L.S., Sacheti, S. and Zhao, J.
(2001)
Common ground between free-traders and environmentalists.
International Economic Review, 42 (3), .
Abstract
We use a North–South model with property right differences and resource dynamics to study the effects of trade on resource use and welfare. Autarky is likely to Pareto-dominate free trade in the long run when the environment is quite fragile, and the result is reversed when the environment is quite resilient. Trade may cause an environmentally poor country to “drag down” its richer trading partner, when they degrade their stocks which would be preserved under autarky. It may enable the environmentally richer country to “pull up” its partner, when they preserve their stocks which would be degraded under autarky.
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Published date: 2001
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Local EPrints ID: 33488
URI: http://eprints.soton.ac.uk/id/eprint/33488
ISSN: 0020-6598
PURE UUID: 2906ac71-f8de-495f-93e4-a00c1b067531
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Date deposited: 16 May 2006
Last modified: 09 Jan 2022 09:55
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Contributors
Author:
L.S. Karp
Author:
S. Sacheti
Author:
J. Zhao
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