Trade, Resource Use and Pollution: A Synthesis

Open‐access renewable resources and pollution: Trade and policy implications in a two‐country model

“…They found that if trading partners exhibit the features of different types, both countries may get harmed from trade by producing and exporting their relatively more damaging goods. One may have noticed that our basic structure is similar to this in Li and Yanase (2022). The present paper, however, contributes to an intuitive exposition of trade policies (import tariffs and export taxes) by using post-trade environmental and welfare comparative steady-state analysis.…”

“…11 The motivation why a particular case-that pollution is less of externality than open access-is chosen is that we aim to analyze the trade patterns, changes in resource conservation, and post-trade welfare between less-developed countries. As seen in Li and Yanase (2022), these countries are of typical examples of resource abundance rather than of advanced manufacturing technology. Following this assumption, we will analyze the trade implications and welfare consequences between the two trading countries which are exposed to the same type of environmental pressure.…”

“…Our model suggests policy implications and provides new insights into optimal trade policies resulting from strategic interactions between resource-importer and exporter counties, which is also not covered in the existing literature, especially in Li and Yanase's model. Therefore, although Li and Yanase (2022) investigate the trade pattern and gains from trade in a two-country model, as far as we know, no study actually concentrates on the impacts of government policies in a framework in which harvesting and manufacturing industries generate environmental pressures that can detrimentally and simultaneously influence the natural resources. Moreover, by contrast to Li and Yanase's model, the current study also focuses on the steady-state transition path and changes in the dynamic labor allocation, implying theoretical complexity during the transition process.…”

“…The papers assuming both production sectors to be environmentaly harmful on resources are Rus (2016) and Li and Yanase (2022). Rus (2016) scrutinizes the influences of international trade in a small open economy framework in the presence of both kinds of interacting problems: over‐harvesting and pollution, as in our model.…”

The Stable Equilibrium Analysis of Nonlinear Renewable Resource Stock Evolution

“…Tey analyzed the relationship between the undesirable costs of externalized pollution emissions and the distortion of environmental quality. Li and Yanase [19] presented a model in which excessive harvesting problems induced by open-access externality and industrial pollution took into consideration simultaneously. Based on the relative impact of these two kinds of twin pressures, countries were categorized into two diferent types, and they concluded that in the case that industrial pollution dominated the resource extraction in damaging terms on resource industry productivity, the production possibilities frontier was drawn in convex-shaped to demonstrate the dominancy of industrial pollution externality.…”