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Environmental Barriers to Trade: The Case of Endangered Sea Turtles

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  • Paul E. Chambers
  • Robert E. Kohn

Abstract

In April of 1998, the World Trade Organization pronounced the US Sea Turtle Conservation Act in violation of the GATT. This paper presents a stylized Heckscher–Ohlin–Samuelson model in which the fatal entrapment of sea turtles in nets of the shrimping industry is a negative externality that reduces global utility. Three trade equilibria are simulated: free trade, trade ban, and free trade with subsidization. With free trade, a transfer of abatement capital from the North to the South results in a Pareto improvement upon the trade ban. The simulations indicate that a cooperative outcome which obtains global efficiency may be feasible but is improbable.

Suggested Citation

  • Paul E. Chambers & Robert E. Kohn, 2001. "Environmental Barriers to Trade: The Case of Endangered Sea Turtles," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 123-132, February.
    • Handle: RePEc:bla:reviec:v:9:y:2001:i:1:p:123-132
    DOI: 10.1111/1467-9396.00268
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    Cited by:

    1. Kohn, Robert E., 2001. "Unilateral transfer of abatement capital," Resource and Energy Economics, Elsevier, vol. 23(2), pages 85-95, April.
    2. Robert Kohn, 2001. "On Shibata'S Negation Of Lump-Sum Transfers In Global Warming Control," International Economic Journal, Taylor & Francis Journals, vol. 17(1), pages 29-41.
    3. Robert Kohn, 2002. "A heckscher-ohlin-samuelson interpretation of the labor-environmental coalition in Seattle," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(1), pages 26-33, March.
    4. Robert Kohn, 2001. "A Heckscher–Ohlin–Samuelson Model of Immigration and Capital Transfers," Open Economies Review, Springer, vol. 12(4), pages 379-387, October.

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