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Dynamic Analysis of a Renewable Resource in a Small Open Economy: The Role of Environmental Policies for the Environment

Author

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  • Yasuhiro Nakamoto

    (Kyushu Sangyo University)

  • Koichi Futagami

    (Osaka University)

Abstract

We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural resource to preserve it. In the setup, we show how the environmental policies affect the natural resource and the domestic economy.

Suggested Citation

  • Yasuhiro Nakamoto & Koichi Futagami, 2016. "Dynamic Analysis of a Renewable Resource in a Small Open Economy: The Role of Environmental Policies for the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(3), pages 373-399, July.
    • Handle: RePEc:kap:enreec:v:64:y:2016:i:3:d:10.1007_s10640-015-9875-3
    DOI: 10.1007/s10640-015-9875-3
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    References listed on IDEAS

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    Cited by:

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    2. Tsuboi, Mizuki, 2019. "Resource scarcity, technological progress, and stochastic growth," Economic Modelling, Elsevier, vol. 81(C), pages 73-88.
    3. Koichi Futagami & Yasuhiro Nakamoto, 2019. "The impacts of pollution control policies on the pollution in small open economies," Discussion Papers in Economics and Business 19-08, Osaka University, Graduate School of Economics.

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    More about this item

    Keywords

    Renewable resources; The effects of environmental policies; Small open economy;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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