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Accumulation, Structural Change and External Balances in a World with Internationally Traded Environmental Assets
Author(s) -
Razmi Arslan
Publication year - 2013
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12028
Subject(s) - economics , portfolio , current account , stock (firearms) , asset (computer security) , balance of trade , balance (ability) , small open economy , investment (military) , natural resource economics , macroeconomics , financial economics , monetary policy , mechanical engineering , medicine , computer security , politics , exchange rate , computer science , law , engineering , political science , physical medicine and rehabilitation
Environmental literature has largely neglected macroeconomic considerations, especially open economy and asset market ones. This paper develops a small country framework that seeks to address these issues. Medium‐ and long‐run aspects are explored using standard trade and portfolio balance models, modified to incorporate trade in claims on non‐renewable resources (environmental assets). In the medium run, changes in environmental regulations, saving behavior and other variables affect the current account, investment and composition of output. In the long run, both the sectoral intensity of environment use and the structure of the economy are affected, as are the capital stock and the global distribution of claims on resources.