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Karp, Larry S.; Sacheti, Sandeep; Zhao, Jinhua. |
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; in this case, both countries degrade their stocks when these would be preserved under autarky. Alternatively, trade may enable the environmentally richer country to pull up" its partner; in this case both countries preserve their stocks when these would be degraded under autarky. These results rationalize the positions of environmentalists and free-traders. The... |
Tipo: Working or Discussion Paper |
Palavras-chave: Environmental Economics and Policy; D5; F1; O2; Q2. |
Ano: 1999 |
URL: http://purl.umn.edu/25042 |
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Karp, Larry S.; Zhao, Jinhua; Sacheti, Sandeep. |
We compare the short-run and long-run effects of environmental reform and harmonization under autarky and free trade. When trade is driven by environmental distortions rather than real relative advantages, harmonization of environmental policies, even if achieved by lowering standards in one country, can improve short-run aggregate welfare. With the possibility of multiple steady states, long-run considerations favor a "race to the top" rather than a "race to the bottom" even when upward and downward harmonizations are equivalent in the short run. For a country trapped in a low (or bad) steady state, environmental reform may not move it to a high (or good) steady state under autarky. However, under trade, harmonization of policies may enable this country... |
Tipo: Working or Discussion Paper |
Palavras-chave: International trade and the environment; Environmental policy reform; International harmonization of environmental policies; Environmental dynamics and trade; Environmental Economics and Policy; International Relations/Trade; Q20; F10; H23. |
Ano: 2000 |
URL: http://purl.umn.edu/25099 |
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