Sustainability in Closed and Open Economies

REVIEW OF INTERNATIONAL ECONOMICS

Posted: 20 Dec 1996

See all articles by Gernot Klepper

Gernot Klepper

Kiel Institute of World Economics

Frank Stähler

University of Tuebingen - Department of Economics; University of Adelaide - School of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

This paper discusses unilateral sustainability policies for tradable resources in closed and open economies. The effects of sustainability policies are modelled in an intertemporal, competitive framework by applying different sustainabilityrules which are introduced unilaterally in the domestic country. The paper shows that no sustainability rule will lead to a slower rate of extraction of the resource. Unilateral policies will lead to an "import of sustainability". It is also shown that the foreign country may well gain in terms of consumption and real income from such unilateral sustainability policies but not in terms of sustainability.

JEL Classification: F20, Q20

Suggested Citation

Klepper, Gernot and Stähler, Frank, Sustainability in Closed and Open Economies. REVIEW OF INTERNATIONAL ECONOMICS, Available at SSRN: https://ssrn.com/abstract=4519

Gernot Klepper

Kiel Institute of World Economics ( email )

D-24100 Kiel
Germany

Frank Stähler (Contact Author)

University of Tuebingen - Department of Economics ( email )

Mohlstrasse 36
D-72074 Tuebingen, 72074
Germany

HOME PAGE: http://www.frank-staehler.de

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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