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Renewable Resources, Environmental Pollution, and International Migration

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  • KENJI KONDO

Abstract

We develop a two-country model with two industries: the smokestack manufacturing industry, which generates pollution, and the transboundary renewable resource industry. With no trade, migration occurs from the foreign country, with lower manufacturing productivity, to the home country. If the gap in pollution abatement technology, which is superior in the home country, dominates the productivity gap, both countries gain from migration. Under a free trade equilibrium, we also show that if the marginal harvest of the resource industry is lower (higher) than marginal damage of manufacturing in the home (foreign) country, migration still causes positive effects on the stock of renewable resources, which should improve both countries' welfare.

Suggested Citation

  • Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa13p33
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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