the conservation effects of trade with imperfect competition and biased policymakers

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ID: 207565
2018
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Abstract
In this paper, we study the effects of international trade on forest conservation and welfare in a two-country model with industry-biased policymakers and Cournot-competing firms. We find that opening up to trade increases the harvest taxes that the industry-biased governments impose compared to the autarky taxes. The tax increase is large enough to decrease the production levels, which leads to higher conservation levels. In addition, the numerical simulation predicts that increasing the industry-bias monotonically increases (i) the positive tax effect, (ii) the positive conservation effect, and (iii) the welfare gains from trade. The intuition behind the results is that industry-biased governments already degrade the environment under autarky, so even a highly-distorted trade outcome can be welfare-improving. We conclude that, even if industry bias decreases conservation, it does not have to increase the environmental costs of trade.
Reference Key
shao2018agriculturethe Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors ;Qianqian Shao;Thorsten Janus;Maarten J. Punt;Justus Wesseler
Journal BMC women's health
Year 2018
DOI
10.3390/agriculture8070108
URL
http://www.mdpi.com/2077-0472/8/7/108
Keywords
international trade environmental conservation race to the topagriculture (general)

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