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Export Bans, Environment, and Developing Country Welfare

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  • Dean, Judith M

Abstract

Deforestation is a serious problem in several developing countries which are timber exporters. Export bans on logs, therefore, have been hailed by some as a welfare-improving policy relative to free trade. This paper explores the case for an export ban on an intermediate good whose production generates environmental damage. In this two-good model, a trade-off emerges between achieving the environmental target and raising national welfare. When environmental damage grows rapidly with output, an export ban is likely to raise welfare. However, it is also likely to lead to higher rates of harvesting than are sustainable. Copyright 1995 by Blackwell Publishing Ltd.

Suggested Citation

  • Dean, Judith M, 1995. "Export Bans, Environment, and Developing Country Welfare," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 319-329, October.
    • Handle: RePEc:bla:reviec:v:3:y:1995:i:3:p:319-29
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    Cited by:

    1. Budy Resosudarmo & Arief Anshory Yusuf & Ditya A. Nurdianto, 2012. "Preliminary Analysis of REDD on Indonesian's Economy," Working Papers in Economics and Development Studies (WoPEDS) 201204, Department of Economics, Padjadjaran University, revised Dec 2012.
    2. Dimitrios Panagiotou & Azzeddine M. Azzam, 2010. "Trade Bans, Imperfect Competition, and Welfare: BSE and the U.S. Beef Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 109-129, March.
    3. Varangis, Panayotis N. & Primo Braga, Carlos A. & Kenji Takeuchi, 1993. "Tropical timber trade policies : what impact will eco-labeling have?," Policy Research Working Paper Series 1156, The World Bank.
    4. Goodland, Robert & Daly, Herman, 1996. "If tropical log export bans are so perverse, why are there so many?," Ecological Economics, Elsevier, vol. 18(3), pages 189-196, September.
    5. Nalin Kishor & Muthukumara Mani & Luis Constantino, 2004. "Economic and Environmental Benefits of Eliminating Log Export Bans – The Case of Costa Rica," The World Economy, Wiley Blackwell, vol. 27(4), pages 609-624, April.
    6. Budy P. Resosudarmo & Arief Anshory Yusuf, 2006. "Is the Log Export Ban Effective? Revisiting the Issue through the Case of Indonesia," Economics and Environment Network Working Papers 0602, Australian National University, Economics and Environment Network.

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