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Dynamic analysis of a renewable resource in a small open economy: The role of environmental policies for the environment

Author

Listed:
  • Koichi Futagami

    (Graduate School of Economics, Osaka University)

  • Yasuhiro Nakamoto

    (Faculty of Economics, Kyushu Sangyo University)

Abstract
We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural resource to preserve it. In the setup, using a phase diagram, we show how the environmental policies affect the natural resource and the domestic economy.

Suggested Citation

  • Koichi Futagami & Yasuhiro Nakamoto, 2010. "Dynamic analysis of a renewable resource in a small open economy: The role of environmental policies for the environment," Discussion Papers in Economics and Business 10-21, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1021
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    References listed on IDEAS

    as
    1. Brander, James A & Taylor, M Scott, 1998. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," American Economic Review, American Economic Association, vol. 88(1), pages 119-138, March.
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    Cited by:

    1. Tsuboi, Mizuki, 2019. "Resource scarcity, technological progress, and stochastic growth," Economic Modelling, Elsevier, vol. 81(C), pages 73-88.
    2. Yasuhiro Nakamoto & Akihiko Yanase, 2022. "Pollution externalities and corrective taxes in a dynamic small open economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(3), pages 667-703, June.
    3. Koichi Futagami & Yasuhiro Nakamoto, 2019. "The impacts of pollution control policies on the pollution in small open economies," Discussion Papers in Economics and Business 19-08, Osaka University, Graduate School of Economics.

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    More about this item

    Keywords

    Renewable resources; The effects of environmental policies.;

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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