Trade, spatial separation, and the environment

• 成果类型: Article
• 署名作者: Copeland, BR; Taylor, MS
• 署名单位: University of British Columbia
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(98)00020-8
• 发表日期: 1999
• 页码: 137-168
• 关键词: two-sector dynamic model; pollution; production externality

摘要

We develop a simple two-sector dynamic model to show how pollution can provide a motive for trade by spatially separating incompatible industries. We assume that the production of Smokestack manufactures generates pollution, which lowers the productivity of an environmentally sensitive sector (Farming). Two identical, unregulated countries will gain from trade if the share of world income spent on Smokestack goods is high. In contrast, when the share of world income spent on the dirty good is low, trade can usher in a negatively reinforcing process of environmental degradation and real income loss for the exporter of Smokestack goods. (C) 1999 Elsevier Science B.V. All rights reserved.