North–South Trade and the Global Environment

摘要: Differences in property rights create a motive for trade among otherwise identical regions. Two regions with technologies, endowments, and preferences will if one, the South, has ill-defined on environmental resources. Trade region well-defined transmits enlarges problem of commons: North overconsumes underpriced resource-intensive products imported from South. This occurs even though equalizes all prices, goods factors, worldwide. Taxing use resources South is unreliable as it can lead to more overextraction. Property-rights policies may be effective. Copyright 1994 by American Economic Association.