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Sustainabilty in Closed and Open Economies

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  • Klepper, Gernot
  • Stahler, Frank

Abstract

This paper discusses unilateral sustainability policies for tradable resources in closed and open economies. The effects of sustainability policies are modeled in an intertemporal, competitive framework by applying different sustainability rules which are introduced unilaterally in the domestic country. The paper shows that no sustainability rule will lead to a slower rate of extraction of the resource. Unilateral policies will lead to an "import of sustainability." It is also shown that the foreign country may well gain in terms of consumption and real income from such unilateral sustainability policies but not in terms of sustainability. Copyright 1998 by Blackwell Publishing Ltd.

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  • Klepper, Gernot & Stahler, Frank, 1998. "Sustainabilty in Closed and Open Economies," Review of International Economics, Wiley Blackwell, vol. 6(3), pages 488-506, August.
    • Handle: RePEc:bla:reviec:v:6:y:1998:i:3:p:488-506
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    1. Joseph E. Stiglitz, 1974. "Growth with Exhaustible Natural Resources: The Competitive Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 139-152.
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    10. John M. Hartwick, 1994. "Sustainability and Constant Consumption Paths in Open Economies with Exhaustible Resources," CESifo Working Paper Series 61, CESifo.
    11. Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
    12. Ethier, Wilfred J. & Svensson, Lars E. O., 1986. "The theoremes of international trade with factor mobility," Journal of International Economics, Elsevier, vol. 20(1-2), pages 21-42, February.
    13. John M. Hartwick, 1978. "Substitution Among Exhaustible Resources and Intergenerational Equity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(2), pages 347-354.
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    Cited by:

    1. Louis Dupuy & Matthew Agarwala, 2014. "International trade and sustainable development," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 25, pages 399-417, Edward Elgar Publishing.
    2. Atkinson, G. & Hamilton, K., 2002. "International trade and the 'ecological balance of payments'," Resources Policy, Elsevier, vol. 28(1-2), pages 27-37.
    3. Harris, Michael & Fraser, Iain, 2002. "Natural resource accounting in theory and practice: A critical assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(2), pages 1-54.
    4. Bright A. Gyamfi & Divine Q. Agozie & Ernest B. Ali & Festus V. Bekun & Simplice A. Asongu, 2024. "Assessment of the influence of institutions and globalization on environmental pollution for open and closed economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(5), pages 4353-4381, October.
    5. Klepper, Gernot & Stähler, Frank, 1996. "The international dimension of sustainability policies," Kiel Working Papers 754, Kiel Institute for the World Economy (IfW Kiel).

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