International trade and terrestrial open-access renewable resources in a small open economy

In this paper, I investigate the effects of trade liberalization and policies on deforestation by extending a small open economy model with open-access renewable resources developed by Brander and Taylor (1997a). I endogenize the carrying capacity of the resource. I find, unlike Brander and Taylor,...

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Bibliographic Details
Published inThe Canadian journal of economics Vol. 39; no. 3; pp. 790 - 808
Main Author Jinji, Naoto
Format Journal Article
LanguageEnglish
Published Malden, USA Blackwell Publishing Inc 01.08.2006
Blackwell Publishing
Blackwell Publishing Ltd
Subjects
Crop diversification
Deforestation
Economic resources
Environmental economics
Environmental protection
F10
Forest certification
Forest resources
Forests
Free trade
Import restriction
Imports
International trade
Open economies
Q20
Renewable resources
Steady state economies
Studies
Timber production
Trade liberalization
Trade models
Trade theory
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Summary:In this paper, I investigate the effects of trade liberalization and policies on deforestation by extending a small open economy model with open-access renewable resources developed by Brander and Taylor (1997a). I endogenize the carrying capacity of the resource. I find, unlike Brander and Taylor, that trade liberalization may increase the forest stock in the resource-abundant country and may decrease the forest stock in the resource-scarce country. Moreover, the policies primarily aimed at protecting forests, such as import restrictions by importing countries and forest certification for well-managed forests, may have perverse effects on the forest stock.
Bibliography:ark:/67375/WNG-90L9PSBR-0
ArticleID:CAJE370
istex:5606609B186903A34053FFA118267453114D2B5D
jinji@e.okayama‐u.ac.jp
I would like to thank Brian Copeland, Ichiroh Daitoh, Jota Ishikawa, Michihiro Ohyama, Shiro Takeda, two anonymous referees, and participants at Aoyama Gakuin University, Hitotsubashi University, Yokohama National University, the 62nd Japan Society of International Economics meeting, and the Fall 2003 meeting of the Midwest International Economics Group for helpful comments and suggestions on earlier versions of the paper. Any remaining errors are my own. I acknowledge financial support from the Ministry of Education, Culture, Sports, Science and Technology under the Grant‐in‐Aid for Young Scientists (B). Most of the work of this paper was accomplished while I was a faculty member of Hitotsubashi University. I am grateful for support from faculty members and staffs of Hitotsubashi University. Email
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ISSN:0008-4085
1540-5982
DOI:10.1111/j.1540-5982.2006.00370.x