Tariff escalation and invasive species damages
AbstractWe investigate the interface between trade and damages from invasive species (IS), focusing on escalation in tariffs between raw-input and processed-good markets, and its implication for IS-based damages. The current tariff escalation in processed agro-forestry products motivates our analysis. Tariff escalation exacerbates the likelihood of IS introduction by biasing trade flows towards increased trade of primary commodity flows and against processed-product trade. We show that a reduction of tariff escalation, by lowering the tariff on processed goods increases allocative efficiency and reduces IS-based damages, a win-win situation. We also identify policy menus for trade reforms involving tariffs on both raw input and processed goods leading to win-win situations.
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Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 67 (2008)
Issue (Month): 4 (November)
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Web page: http://www.elsevier.com/locate/ecolecon
Exotic pest Tariff escalation Trade Invasive species Damages Agriculture Forestry;
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