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International trade, species diversity, and habitat conservation

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Abstract

Trade barriers mayimprove welfare if propertyrights with respect to renewable natural resources are
lacking. Previous studies focus on the role of overharvesting, but we argue that trade-induced habitat
destruction should also be taken into account. Habitat is one of the keyfactors determining the long-run
viabilityof manynatural resources, and economic activityoftentimes goes at the expense of habitat. While
open access gives rise to within-industryexternalities, habitat destruction creates across-industry
externalities. We identifyunder what circumstances trade liberalization is welfare-enhancing as well as
contributing to nature conservation, and analyze the consequences of trade policy.
r 2004 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)891-910
Number of pages19
JournalJournal of Environmental Economics and Management
Volume48
Issue number2
DOIs
Publication statusPublished - 2004

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 1 - No Poverty
    SDG 1 No Poverty
  2. SDG 15 - Life on Land
    SDG 15 Life on Land

Keywords

  • trade policy
  • trade liberalization
  • nature conservation
  • renewable resources
  • species diversity

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