Environmental Protection in the Presence of Unemployment and Common Resources

13 Pages Posted: 29 Jan 2016

See all articles by Kenzo Abe

Kenzo Abe

Osaka University - Graduate School of Economics

Muneyuki Saito

Nara Prefectural University

Date Written: February 2016

Abstract

This paper examines the effects of an export tax (on a processed resource good), the number of harvesters and an afforestation policy in a small, open economy with urban unemployment. The export tax increases the urban unemployment rate, but improves the quality of the environment. Here, the optimal export tax is lower than the adjusted marginal environmental damage. Reducing the number of harvesters has a similar resource allocation effect to that of an export tax. However, the afforestation policy can resolve the trade‐off between urban unemployment and the quality of the environment and may also improve the welfare of a country.

Suggested Citation

Abe, Kenzo and Saito, Muneyuki, Environmental Protection in the Presence of Unemployment and Common Resources (February 2016). Review of Development Economics, Vol. 20, Issue 1, pp. 176-188, 2016, Available at SSRN: https://ssrn.com/abstract=2724272 or http://dx.doi.org/10.1111/rode.12197

Kenzo Abe (Contact Author)

Osaka University - Graduate School of Economics ( email )

1-7 Machikaneyama
Toyonaka, Osaka, 560-0043
Japan

Muneyuki Saito

Nara Prefectural University ( email )

10 Funabashi-cho
Nara, Nara 630-8258
Japan

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