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Full-Text Articles in Social and Behavioral Sciences

A Spatial Approach To Energy Economics: Theory, Measurement And Empirics, M. Scott Taylor, Juan Moreno-Cruz May 2014

A Spatial Approach To Energy Economics: Theory, Measurement And Empirics, M. Scott Taylor, Juan Moreno-Cruz

M. Scott Taylor

No abstract provided.


A Spatial Approach To Energy Economics, M. Scott Taylor, Juan Moreno-Cruz Mar 2013

A Spatial Approach To Energy Economics, M. Scott Taylor, Juan Moreno-Cruz

M. Scott Taylor

No abstract provided.


Back To The Future Of Green Powered Economies, M. Scott Taylor, Juan Moreno-Cruz Jun 2012

Back To The Future Of Green Powered Economies, M. Scott Taylor, Juan Moreno-Cruz

M. Scott Taylor

No abstract provided.


Wie Der Welthandel Die Bisons, M. Scott Taylor Apr 2011

Wie Der Welthandel Die Bisons, M. Scott Taylor

M. Scott Taylor

No abstract provided.


Environmental Crises: Past, Present Ad Future, M. Scott Taylor Jan 2009

Environmental Crises: Past, Present Ad Future, M. Scott Taylor

M. Scott Taylor

Environmental crises are distinguished by rapid and largely unexpected changes in environmental quality that are difficult if not impossible to reverse. Examples would be major extinctions and signi…cant degradations of an ecosystem. I argue there are three preconditions for crisis: failures in governance, an ecological system exhibiting a tipping point, and an economy/environment interaction with positive feedbacks. I develop a simple model to illustrate how a crisis may arise, and draw on our knowledge of past and present crises to highlight the mechanisms involved. I then speculate as to whether climate change is indeed a crisis in the making.


Trade, Tragedy, And The Commons, M. Scott Taylor, Brian R. Copeland Dec 2008

Trade, Tragedy, And The Commons, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

We develop a theory of resource management where the degree to which countries escape the tragedy of the commons is endogenously determined and explicitly linked to changes in world prices and other possible effects of market integration. We show how changes in world prices can move some countries from de facto open access situations to ones where management replicates that of an unconstrained social planner. Not all countries can follow this path of institutional reform and we identify key country characteristics (mortality rates, resource growth rates, technology) to divide the world's set of resource rich countries into Hardin, Ostrom and …


Buffalo Hunt International Trade And The Virtual Extinction Of The North American Bison, M. Scott Taylor Nov 2008

Buffalo Hunt International Trade And The Virtual Extinction Of The North American Bison, M. Scott Taylor

M. Scott Taylor

In the 16th century, North America contained 25-30 million buffalo; by the late 19th century less than 100 remained. While removing the buffalo east of the Mississippi took settlers two centuries, the remaining 10 to 15 million buffalo on the Great Plains were killed in a punctuated slaughter in a little over 10 years. I employ theory, data from international trade statistics, and first person accounts to argue that the slaughter on the plains was initiated by a foreign-made innovation and fueled by a foreign demand for industrial leather. Ironically, the ultimate cause of this sad chapter in American environmental …


Unmasking The Pollution Haven Effect, M. Scott Taylor, Arik Levinson Feb 2008

Unmasking The Pollution Haven Effect, M. Scott Taylor, Arik Levinson

M. Scott Taylor

This paper uses both theory and empirical work to examine the effect of environmental regulations on trade flows. We develop a simple economic model to demonstrate how unobserved heterogeneity, endogeneity and aggregation issues bias measurements of the relationship between regulatory costs and trade. We apply an estimating equation derived from the model to data on U.S. regulations and net trade flows among the U.S., Canada, and Mexico, for 130 manufacturing industries from 1977 to 1986. Our results indicate that industries whose abatement costs increased most experienced the largest increases in net imports. For the 20 industries most affected by regulation, …


Economic Growth And The Environment: A Review Of Theory And Empirics, M. Scott Taylor, William Brock Dec 2006

Economic Growth And The Environment: A Review Of Theory And Empirics, M. Scott Taylor, William Brock

M. Scott Taylor

The relationship between economic growth and the environment is, and will always remain, controversial. Some see the emergence of new pollution problems, the lack of success in dealing with global warming and the still rising population in the Third World as proof positive that humans are a short-sighted and rapacious species. Others however see the glass as half full. They note the tremendous progress made in providing urban sanitation, improvements in air quality in major cities and marvel at the continuing improvements in the human condition made possible by technological advance. The first group focuses on the remaining and often …


Unbundling The Pollution Haven Hypothesis, M. Scott Taylor Jun 2005

Unbundling The Pollution Haven Hypothesis, M. Scott Taylor

M. Scott Taylor

The “Pollution Haven Hypothesis” (PHH) is one of the most contentious and hotly debated predictions in all of international economics. This paper explains the theory behind the PHH by dividing the hypothesis into a series of logical steps linking assumptions on exogenous country characteristics to predictions on trade flows and pollution levels. I then discuss recent theoretical and empirical contributions investigating the PHH to show that each contribution either questions the logical inevitability or the empirical significance of one or more steps in the pollution haven chain of logic. Suggestions for future research are also provided.


Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, Appendix Proofs, M. Scott Taylor, Brian R. Copeland Mar 2005

Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, Appendix Proofs, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

No abstract provided.


Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, M. Scott Taylor, Brian R. Copeland Mar 2005

Free Trade And Global Warming: A Trade Theory View Of The Kyoto Protocol, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

This paper demonstrates how several important results in environmental economics, true under mild conditions in closed economies, are false or need serious amendment in a world with international trade in goods. Since the results we highlight have framed much of the ongoing discussion and research on the Kyoto protocol, our viewpoint from trade theory suggests a re- examination may be in order. Specifically, we demonstrate that in an open trading world, but not in a closed economy setting: (1) unilateral emission reductions by the rich North can create self- interested emission reductions by the unconstrained poor South; (2) simple rules …


The Green Solow Model, M. Scott Taylor, William A. Brock Jun 2004

The Green Solow Model, M. Scott Taylor, William A. Brock

M. Scott Taylor

We demonstrate that a key empirical finding in environmental economics - The Environmental Kuznets Curve - and the core model of modern macroeconomics - the Solow model - are intimately related. Once we amend the Solow model to incorporate technological progress in abatement, the EKC is a necessary by product of convergence to a sustainable growth path. Our amended model, which we dub the "Green Solow", generates an EKC relationship between both the flow of pollution emissions and income per capita, and the stock of environmental quality and income per capita. The resulting EKC may be humped shaped or strictly …


Trade , Growth, And The Environment, M. Scott Taylor, Brian R. Copeland Mar 2004

Trade , Growth, And The Environment, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

For the last ten years environmentalists and the trade policy community have engaged in a heated debate over the environmental consequences of liberalized trade. The debate was originally fueled by negotiations over the North American Free Trade Agreement and the Uruguay round of GATT negotiations, both of which occurred at a time when concerns over global warming, species extinction and industrial pollution were rising. Recently it has been intensified by the creation of the World Trade Organization (WTO) and proposals for future rounds of trade negotiations. The debate has often been unproductive. It has been hampered by the lack of …


Discussion Of "Is Trade Good Or Bad For The Environment, Sorting Out The Causality" By Jeffrey Frankel And Andrew Rose, M. Scott Taylor Apr 2002

Discussion Of "Is Trade Good Or Bad For The Environment, Sorting Out The Causality" By Jeffrey Frankel And Andrew Rose, M. Scott Taylor

M. Scott Taylor

No abstract provided.


Is Free Trade Good For The Environment, M. Scott Taylor, Werner Antweiler, Brian R. Copeland Sep 2001

Is Free Trade Good For The Environment, M. Scott Taylor, Werner Antweiler, Brian R. Copeland

M. Scott Taylor

This paper investigates how openness to international goods markets affects pollution concentrations. We develop a theoretical model to divide trade’s impact on pollution into scale, technique, and composition effects and then examine this theory using data on sulfur dioxide concentrations. We find international trade creates relatively small changes in pollution concentrations when it alters the composition of national output. Estimates of the trade-induced technique and scale effects imply a net reduction in pollution from these sources. Combining our estimates of all three effects yields a somewhat surprising conclusion: freer trade appears to be good for the environment.


Trade, Spatial Separation, And The Environment, M. Scott Taylor, Brian R. Copeland Sep 1999

Trade, Spatial Separation, And The Environment, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

We develop a simple two-sector dynamic model to show how pollution can provide a motive for trade by spatially separating incompatible industries. We assume that the production of "Smokestack" manufactures generates pollution, which lowers the productivity of an environmentally sensitive sector (Farming). Two identical, unregulated countries will gain from trade if the share of world income spent on the dirty good is high. In contrast, when the share of world income spend on the dirty good is low, trade can usher in a negatively reinforcing process of environmental degradation and real income loss for the exporter of Smokestack goods.


Open-Access Renewable Resources: Trade And Trade Policy In A Two-Country Model, M. Scott Taylor, James A. Brander Apr 1998

Open-Access Renewable Resources: Trade And Trade Policy In A Two-Country Model, M. Scott Taylor, James A. Brander

M. Scott Taylor

We develop a theory of resource management where the degree to which countries escape the tragedy of the commons is endogenously determined and explicitly linked to changes in world prices and other possible effects of market integration. We show how changes in world prices can move some countries from de facto open access situations to ones where management replicates that of an unconstrained social planner. Not all countries can follow this path of institutional reform and we identify key country characteristics (mortality rates, resource growth rates, technology) that divide world's set of resource rich countries into three categories. Category I …


The Simple Economics Of Easter Island: A Ricardo-Malthus Model Of Renewable Resource Use, M. Scott Taylor, James A. Brander Mar 1998

The Simple Economics Of Easter Island: A Ricardo-Malthus Model Of Renewable Resource Use, M. Scott Taylor, James A. Brander

M. Scott Taylor

We present a simple general equilibrium model of renewable resource and population dynamics that may explain the rise and fall of Easter Island's civilization. The model generates a system similar to the Lotka-Volterra predator-prey model. In our formulation man is the predator and the resource base is the prey, leading to the possibility of feast and famine cycles of rising and falling population and resource stocks. Such cycles tend to arise when fertility is high and the resource base grows slowly. We speculate that such cycles may often cause violent conflict and describe other civilizations that may have declined because …


International Trade Between Consumer And Conservationist Countries, M. Scott Taylor, James A. Brander Oct 1997

International Trade Between Consumer And Conservationist Countries, M. Scott Taylor, James A. Brander

M. Scott Taylor

We consider trade between a Consumer country with an open access renewable resource and a Conservationist country that regulates resource harvesting to maximize domestic steady-state utility. In what we call the mild overuse case, the consumer country exports the resource good and suffers steady-state losses from trade, as suggested by the conventional wisdom that weak resource management standards confer a comparative advantage on domestic firms in the resource sector but cause welfare losses. Strikingly, however, when the resource stock is most in jeopardy, the conservationist country exports the resource good in steady state and both countries gain from trade.


International Trade And Open-Access Renewable Resources: The Small Open Economy Case, M. Scott Taylor, James A. Brander Aug 1997

International Trade And Open-Access Renewable Resources: The Small Open Economy Case, M. Scott Taylor, James A. Brander

M. Scott Taylor

We examine a small open economy with an open-access renewable resource. Using a novel two-sector general equilibrium model, we characterize the autarkic steady state, and then show that trade reduces steady-state utility for a diversified resource exporter. Instantaneous gains occur as trade opens, but they are eroded by ongoing resource depletion. The present value of utility falls for appropriate discount rates, and terms of trade "improvements" may be welfare reducing. We also show that autarky prices, the pattern of trade, and the structure of production are all linked to a simple ratio of the intrinsic resource growth rate to labor …


The Trade Induced Degradation Hypothesis, M. Scott Taylor, Brian R. Copeland May 1997

The Trade Induced Degradation Hypothesis, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

This paper develops a simple two-sector dynamic model to examine the effects of international trade when government policy regarding the environment is short-sighted, but still responsive to changes in income levels and in the quality of the environment. We show that free trade can usher in a negatively reinforcing cycle of increased pollution, lower environmental quality, and lower real incomes. Such cycles are not possible in autarky. We link the potential for trade to cause large environmental consequences to the structure of tastes and technologies and the attributes of industrial pollution.


Trade And Transboundary Pollution, M. Scott Taylor, Brian R. Copeland Sep 1995

Trade And Transboundary Pollution, M. Scott Taylor, Brian R. Copeland

M. Scott Taylor

This paper examines how national income and trading opportunities interact to determine the level and incidence of world pollution. We find that: (1) free trade raises world pollution if incomes differ substantially across countries; (2) if trade equalizes factor prices, human-capital-abundant countries lose from trade, while human capital scarce countries gain; (3) international trade in pollution permits can lower world pollution even when governments' supply of permits is unrestricted; (4) international income transfers may not affect world pollution or welfare; and (5) attempts to manipulate the terms of trade with pollution policy leave world pollution unaffected.


'Once-Off' And Continuing Gains From Trade, M. Scott Taylor Aug 1994

'Once-Off' And Continuing Gains From Trade, M. Scott Taylor

M. Scott Taylor

Most Economists are familiar with the static or once-off welfare gains created by opening an economy to trade. Much less is known about how the resource reallocations necessitated by this move affect long-run growth, and hence whether they provide dynamic or continuing welfare gains in future periods. This paper employs a dynamic Ricardian trade model to provide a decomposition of the gains from trade into "once-off" and continuing categories. In one version of the model, trade is always welfare enhancing; in the other, "once-off" losses may occur alongside dynamic gains. In both versions the magnitude of the once-off and continuing …


North-South Trade And The Environment, M. Scott Taylor, Brian A. Copeland Aug 1994

North-South Trade And The Environment, M. Scott Taylor, Brian A. Copeland

M. Scott Taylor

A simple static model of North-South trade is developed to examine linkages between national income, pollution, and international trade. Two countries produce a continuum of goods, each differing in pollution intensity. We show that the higher income country chooses stronger environmental protection, and specializes in relatively clean goods. By isolating the scale, composition, and technique effects of international trade on pollution, we show that free trade increases world pollution; an increase in the Rich North's production possibilities increases pollution, while similar growth in the poor South lowers pollution; and unilateral transfers from North to South reduce worldwide pollution.


Trips, Trade, And Growth, M. Scott Taylor May 1994

Trips, Trade, And Growth, M. Scott Taylor

M. Scott Taylor

A two country model of endogenous growth is employed to assess the importance of intellectual property rights to trade, growth and technology transfer. The paper provides theoretical results linking the intellectual property rights regime to trade patterns, aggregate R&D, worldwide growth, and aggregate welfare measures. Failure to provide patent protection for foreign made innovations forces innovators to employ less than the best practice research technologies, reduces aggregate R&D activities worldwide, effectively eliminates technology transfer across countries, and reduces worldwide growth.


'Quality Ladders' And Ricardian Trade, M. Scott Taylor Dec 1993

'Quality Ladders' And Ricardian Trade, M. Scott Taylor

M. Scott Taylor

A Model of endogenous growth and trade is developed that extends the continuum Ricardian model of Dornbusch et al. (1977) to a dynamic framework, generalizes the 'Quality ladders' approach of Grossman and Helpman (1991a,b), and complements the work of Krugman (1987) on dynamic Ricardian economies. In contrast to earlier work the model incorporates heterogeneity across industries in research and production technologies, and in the technological opportunity for innovation. The importance of heterogeneity is demonstrated through a comparative steady-state analysis. Several applications for the model are discussed and many others appear possible given its relatively simple structure.


Trips, Trade, And Technology Transfer, M. Scott Taylor Aug 1993

Trips, Trade, And Technology Transfer, M. Scott Taylor

M. Scott Taylor

A North-South model of unintentional technology transfer is developed where the stringency of sountern patent protection provides the institutional backdrop for a strategic game in a high-tech goods market. The appropriability regime is set endogenously and combines elements of imperfect sounthern patent protection with the protection afforded by market-made northern technology "masquing". Less stringent protection of northern intellectual property can "work" much like other strategic trade policies; therefore, developed countries appear to be right in demand discussion of intellectual property rights in GATT.