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Does International Trade Cause Overfishing?

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  • Tobias Erhardt

Abstract

This paper investigates whether and how openness to international trade affects overfishing in national exclusive economic zones (EEZ). Brander and Taylor propose two scenarios: trade liberalization may fuel the overuse of renewable resources in countries that allow open access to the resource, or, alternatively, it may dampen such overuse in unregulated harvesting countries. Based on panel data from the Sea Around Us project on fish stock collapse and overuse in national EEZs, I test these competing theoretical predictions. Using fixed effects and system-GMM estimation, I find that the effect of openness on the level of overuse of fish species depends on the relative level of governance. Most specifications suggest that opening trade reduces fish stock collapse and overuse in countries with lax governance, while it does not significantly affect overexploitation in countries that exhibit high levels of governance.

Suggested Citation

  • Tobias Erhardt, 2018. "Does International Trade Cause Overfishing?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 695-711.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/698362
    DOI: 10.1086/698362
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    Cited by:

    1. Kym Anderson, 2023. "Agriculture's globalization: Endowments, technologies, tastes and policies," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1314-1352, September.
    2. Ryan Abman & Clark Lundberg & Michele Ruta, 2024. "The Effectiveness of Environmental Provisions in Regional Trade Agreements," Journal of the European Economic Association, European Economic Association, vol. 22(6), pages 2507-2548.
    3. Gökhan Güven & Selim İnançlı, 2023. "Open‐access renewable resources and pollution: Trade and policy implications in a two‐country model," Review of Development Economics, Wiley Blackwell, vol. 27(4), pages 2583-2617, November.
    4. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    5. Bronnmann, Julia & Smith, Martin D. & Abbott, James & Hay, Clinton J. & Næsje, Tor F., 2020. "Integration of a local fish market in Namibia with the global seafood trade: Implications for fish traders and sustainability," World Development, Elsevier, vol. 135(C).
    6. Kym Anderson, 2021. "Food policy in a more volatile climate and trade environment," Departmental Working Papers 2021-25, The Australian National University, Arndt-Corden Department of Economics.
    7. Abman, Ryan & Lundberg, Clark & Szmurlo, Daniel, 2022. "Trade, Emissions, and Environmental Spillovers: Issue Linkages in Regional Trade Agreements," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322511, Agricultural and Applied Economics Association.
    8. Elsler, Laura G. & Drohan, Sarah E. & Schlüter, Maja & Watson, James R. & Levin, Simon A., 2019. "Local, Global, Multi-Level: Market Structure and Multi-Species Fishery Dynamics," Ecological Economics, Elsevier, vol. 156(C), pages 185-195.
    9. Basak Bayramoglu & Estelle Gozlan & Clément Nedoncelle & Thibaut Tarabbia, 2023. "Trade Agreements and Sustainable Fisheries [Accords commerciaux et pêche durable]," Working Papers hal-04101044, HAL.
    10. Eisenbarth, Sabrina, 2022. "Do exports of renewable resources lead to resource depletion? Evidence from fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    11. Cecilia Bellora & Jean-Christophe Bureau & Basak Bayramoglu & Estelle Gozlan & Sébastien Jean, 2020. "Trade and Biodiversity [Commerce et biodiversité]," Working Papers hal-02887592, HAL.
    12. Tatyana Chesnokova & Stephanie McWhinnie, 2019. "International Fisheries Access Agreements and Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1207-1238, November.
    13. 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.
    14. Ha, Le Thanh, 2024. "A transition to sustainable marine living resources: Why does digital transformation matter?," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    15. Isaksen, Elisabeth Thuestad & Richter, Andries, 2019. "Tragedy, property rights, and the commons: investigating the causal relationship from institutions to ecosystem collapse," LSE Research Online Documents on Economics 90606, London School of Economics and Political Science, LSE Library.

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