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INTERNATIONAL RESOURCE & ENVIRONMENTAL ISSUES

INTERNATIONAL RESOURCE & ENVIRONMENTAL ISSUES. 2 types of problem (not mutually exclusive) 1. PREDATORY BEHAVIOUR 2. COMMON RESOURCE ISSUES “Public Goods” “Tragedy of the Commons”. INTERNATIONAL CARTELS. Rourke, chap. 13 Nye, pp. 208-13. When successful? 1. raise price w/o fall in sales

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INTERNATIONAL RESOURCE & ENVIRONMENTAL ISSUES

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  1. INTERNATIONAL RESOURCE & ENVIRONMENTAL ISSUES 2 types of problem (not mutually exclusive) 1. PREDATORY BEHAVIOUR 2. COMMON RESOURCE ISSUES “Public Goods” “Tragedy of the Commons”

  2. INTERNATIONAL CARTELS Rourke, chap. 13 Nye, pp. 208-13 When successful? 1. raise price w/o fall in sales 2. political congeniality 3. barriers to entry 4. hegemon 5. ease of monitoring cheating

  3. Global Environment Tragedy of the Commons private good high rivalry low “knowledge” goods low high Public Good excludability PG & ToC  EXTERNALITY

  4. TRAGEDY OF THE COMMONS Domestic: grazing land in medieval England International: fishing rivalry: not excludable: Antarctica rivalry: not excludable:

  5. INTERNATIONALPUBLIC GOOD Preventing global warming = Controlling greenhouse gas emissions no rivalry: not excludable:

  6. SOLVING THE PROBLEM 1. correct diagnosis is there an externality? is it international? 2. types of solutions i. private property ii. global ownership/management 3. how decide? i. privatization may not be possible: ii. ease of bilateral bargaining:

  7. ANTARCTICA Early 20th c: 7 countries claim pie wedges: Argentina, Australia, Chile, France, NZ, UK After WW2 US, SU: recognise no claims 1959 treaty: preserve for peaceful use = no military, no radioactive waste governed by ATCP, n = 38 1990 – 50 year ban mineral exploration 1984 UN GA votes “common heritage of mankind” = assertion of global ownership temptation: oil, minerals, fish

  8. Global warming Kyoto Treaty 1997 7% below 1990 US refuses to join: Russia 2004: EU links Kyoto to WTO treaty = IL Rourke pp. 540 - 549

  9. solutions createpolitical conflicts 1. privatization who gets what ? 2. global ownership/control how distribute costs ?

  10. OCEANS traditional 3 mile limit infinite supply – no ToC 1970 GA “common heritage mankind” 1980s: 12 mi + 200 mi resource zone 3 200 12 shelf abyss slope

  11. POOR COUNTRIES HATERICH COUNTRY ENVIRONMENTALISTS 1. you don’t understand our priorities: 2. environmentalism = protectionism 3. respect our sovereignty 4. environmentalism = rich country plot 5. if you are so concerned about the environment, you pay to clean it up

  12. Rourke cases chap.16 • population • minerals • forest • wildlife • water • fish & whales • pollution • global warming • ozone Ask: 1. ToC, PG, or something else? 2. externality? 3. international? 4. solutions proposed? implemented? successful? examples: whales ivory ozone

  13. externality? no (toxic waste trade) yes domestic vs international domestic only (ivory, forest) international small # large # informal IO (IWC) bilateral (acid rain) privatise (oceans) formal IO (= treaty with sanctions) (Kyoto)

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