Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/97298
Authors: 
Quaas, Martin F.
Stöven, Max T.
Year of Publication: 
2014
Series/Report no.: 
Economics Working Paper, Christian-Albrechts-Universität Kiel, Department of Economics 2014-08
Abstract: 
The literature on trade in renewable resources implicitly assumes that the traded resources are perfect substitutes. We model trade in renewable resources as stipulated not only by autarky price differences, but also by consumers' love of variety. We show that the love-of-variety effect enables welfare gains from trade even if total consumption decreases. Total consumption may decrease because the love of variety weakens the link between resource scarcity and demand. If consumers are willing to pay the rising prices for harvests from increasingly depleted stocks, trade liberalization may end in stock collapse. The love of variety may thus threaten variety.
Subjects: 
trade
environment
renewable resources
open access
love of variety
JEL: 
Q21
Q22
Q23
Q27
F18
Document Type: 
Working Paper

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