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Triple win for trade in renewable resource goods by use of export taxes

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  • Flaaten, Ola
  • Schulz, Carl Erik

Abstract

We challenge the free trade paradigm, in particular for developing countries exporting natural resource goods, by demonstrating positive economic and environmental effects of an export tax for renewable resource goods. The two-sector general equilibrium model designed has an open-access renewable resource industry and a manufacturing industry. The economic, environmental and social effects of using an export tax on goods from the open-access renewable resource industry are analysed. It is demonstrated that the gross domestic product, the steady-state resource stock and the domestic consumption of both products increase with the resource export tax compared to free trade with no trade taxes.

Suggested Citation

  • Flaaten, Ola & Schulz, Carl Erik, 2010. "Triple win for trade in renewable resource goods by use of export taxes," Ecological Economics, Elsevier, vol. 69(5), pages 1076-1082, March.
    • Handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1076-1082
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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. Solleder, Jean-Marc, 2020. "Market power and export taxes," European Economic Review, Elsevier, vol. 125(C).
    3. Louis Dupuy, 2012. "International Trade and Sustainability: A survey," Larefi Working Papers 201201, Larefi, Université Bordeaux 4.
    4. Luca Mulazzani & Rosa Manrique & Giovanna Trevisan & Giulio Malorgio, 2015. "Fish market integration and demand analysis: a Mediterranean case study," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 39-52, January.
    5. Louis Dupuy, 2012. "International Trade and Sustainability: A survey," Larefi Working Papers 1201, Larefi, Université Bordeaux 4.
    6. Olga Solleder, 2013. "Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates," IHEID Working Papers 07-2013, Economics Section, The Graduate Institute of International Studies.
    7. Gökhan Güven, 2024. "The effects of resource export and import taxes on resource conservation and welfare outcomes: triple win or loss reconsidered," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-53, August.
    8. Ying Lin & Henry W. Kinnucan, 2020. "The optimal export tax for a primary commodity in a vertical market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 909-922, November.
    9. Liaila Tajibaeva, 2012. "Property Rights, Renewable Resources and Economic Development," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 23-41, January.

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