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Trade liberalisation and global-scale forest transition

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  • González-Val, Rafael
  • Pueyo, Fernando

Abstract

In this paper, we develop a new theoretical model that explains the forest transition not at a local, but at a worldwide level, in a trade liberalisation scenario. Our model has economic geography foundations: transport costs affect the distribution of firms between countries. We also introduce a renewable natural resource used as an input by manufacturing firms. The results reproduce forest transition behaviour but at a global scale: a decrease in transport costs has a negative effect on the worldwide stock of the natural resource in the short-term, but in the long-term this initial effect is reversed as a consequence of industrial reorganisation between countries because of the change in transport costs.

Suggested Citation

  • González-Val, Rafael & Pueyo, Fernando, 2012. "Trade liberalisation and global-scale forest transition," MPRA Paper 36271, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36271
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    More about this item

    Keywords

    Forest transition; renewable resources; industrial location; geography; trade;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • F18 - International Economics - - Trade - - - Trade and Environment
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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