TRADE, INNOVATION, ENVIRONMENT

Transcription

1 TRADE, INNOVATION, ENVIRONMENT

2 FONDAZIONE ENI ENRICO MATTEI (FEEM) SERIES ON ECONOMICS, ENERGY AND ENVIRONMENT This series serves as an outlet for the main results of FEEM' s research programmes in the areas of economics, energy and environment. The Scientific Advisory Board of the series is composed as follows: Kenneth J. Arrow Department of Economics, Stanford University, Stanford, California, USA William 1. Baumol C.V. Starr Center for Applied Economics, New York University, New York City, USA Partha Dasgupta Cambridge University, Cambridge, United Kingdom Siro Lombardini University of Turin, Turin, Italy Karl-Goran Maler The Beijer Institute, Stockholm, Sweden Ignazio Musu University of Venice, Venice, Italy James M. Poterba Department of Economics, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA Domenico Siniscalco (Series Editor) Director, Fondazione Eni Enrico Mattei, Milan, Italy and University of Turin, Turin, Italy Giorgio Barba Navaretti (Series Associate Editor) Fondazione Eni Enrico Mattei and University of Milan, Milan, Italy The titles published in this series are listed at the end of this volume.

3 Trade, Innovation, Environment edited by Carlo Carraro University of Venice, Greta and Fondazione Eni Enrico Mattei, Milan, Italy.. SPRINGER SCIENCE+BUSINESS MEDIA, B.V.

4 Library of Congress Cataloging-in-Publication Data Trade, innovation, envlronment! edlted by Carlo Carraro. p. cm. -- (Economics, energy, and environment ; v. 21 ISBN ISBN (ebook) DOI / Internatlonal trade--environmental aspects. 2. Envlronmental pollcy--economic aspects. 3. Renewable natura' resources. 1. Carraro, Carlo. II. Serles. HF1379.T dc TSBN Printed on acid-free paper AII Rights Reserved 1994 Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers in 1994 Softcover reprint ofthe hardcover Ist edition 1994 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical. including photocopying, recording or by any information storage and retrieval system, without written permis sion from the copyright owner.

5 Table of Contents Preface Domenico Siniscalco vii Introduction 1 Carlo Carrara 1. MODELS OF TRADE AND THE ENVmONMENT 1.1 Property Rights and the Dynamics of Renewable Resources in North-South Trade 15 Graciela Chichilnisky 1.2 Trade, Tropical Deforestation and Policy Interventions 55 Edward B. Barbier and Michael Rauscher 1.3 Greens, Supergreens, and International Trade Policy: Environmental Concerns and Protectionism 75 Arye L. Hillman and Heinrich W. Ursprung 1.4 Foreign Trade and Renewable Resources 109 Michael Rauscher 1.5 Environmental Policy, Plant Location and Government Protection 123 Alistair Ulph 2. MODELS OF INNOVATION AND GROWTH 2.1 Should Environmental Innovation Policy Be Internationally Coordinated? 167 Carlo Carrara and Giorgio Tapa v

6 vi 2.2 Strategic Innovation and Strategic Environmental Policy 205 David Ulph 2.3 Investment in Oean Technology and Transboundary 229 Pollution Control Frederick van der Ploeg and Aart J. de Zeeuw 2.4 Endogenous Growth, Environment, and R&D 241 Victor Hung, Pamela Chang and Keith Blackburn 2.5 Sustainable Growth and Renewable Resources' in the Global Economy 259 Frederick van der Ploeg and Jenny E. Ligthart 3. POLICY ISSUES 3.1 Laissez Faire or Nationalization and Collective Control of the Global Commons 283 Richard S. Eckaus 3.2 Formation of International Environmental Agreements 301 Geoffrey Heal 3.3 The Design of a Carbon Tax in an Incomplete International Oimate Agreement 323 RolfGolombek, Cathrine Hagem and Michael Hoel 3.4 Air Pollution and Energy Policies: The Role of Environmental Damage Estimation 363 Ani! Markandya 3.5 Economic Issues and Negotiation on Global Environment. Some Lessons from the Recent Experience on Greenhouse Effect 385 Jean-Charles Hourcade

7 Preface The research projects at Fondazione Mattei have for some time now been dealing with the international dimension of environmental policy. Indeed, most environmental phenomena have international implications, which stem from a number of factors: physical ones, such as the transnational or global consequences of pollution and resource conservation; technological factors, such as technological cooperation and diffusion; and economic factors, such as trad~, plant localization and migrations. Even in the absence of transnational pollution, therefore, the environmental issues involve substantial interdependence among countries. This volume, edited by Carlo Carraro, presents some of the research which we carried out in international environmental policy, focusing on the relationship between trade, innovation and the environment. The papers in part one discuss the impact of international trade and institutions on environmental resources. Those in part two deal with the importance of innovation when attempting to solve the major environmental problems. The papers in part three, finally, focus on specific policy issues stressing the importance of institutions and property rights. The whole set of contributions can be seen as progress in environmental economics. The different chapters highlight the close relationship between environmental issues and economic development and they merge the literature on the environment with the literature on innovation, economic growth, trade, plant localization, institutions, etc. Over and above their specific content, all the contributions show that there is much to be gained from merging environmental economics with other fields of our discipline and that the issue of policy coordination goes far beyond its obvious applications. For this reason they also outline an important research programme that needs further substantial investment by economists and policy makers. Milano, September 1993 Domenico Siniscalco Director Fondazione Eni Enrico Mattei Vll C. Carraro (ed.), Trade,lnnovation, Environment, vii Kluwer Academic Publishers. Dordrecht.