Free trade may save a renewable resource from exhaustion

Akihiko Yanase ()

Economics Bulletin, 2013, vol. 33, issue 1, 226-233

Abstract: This study considers a small open economy in which two tradable final goods are produced by using a non-tradable resource good, which has an open-access property, as an input as well as a primary factor. If the intrinsic growth rate of the resource is relatively low, there may be no non-trivial steady state or multiple steady states. This implies that, by opening international trade, the economy can escape from the risk of complete depletion of the resource.

Keywords: International trade; Open-access renewable resources; Intermediate good; Multiple steady states; Resource depletion (search for similar items in EconPapers)
JEL-codes: F1 Q2 (search for similar items in EconPapers)
Date: 2013-01-25
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P22.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-12-00783

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().