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A second look at managing import risk from invasive species

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  • Mérel, Pierre R.
  • Carter, Colin A.

Abstract

This paper investigates optimal trade-related policies for managing import risk arising from invasive species. We find analytical evidence that when a cleaning technology is available for foreign exporters and the optimal level of import inspections is strictly positive, a penalty imposed on contaminated imports is likely to be superior to a simple tariff policy designed to reduce the overall volume of trade, for low levels of the inspection cost. The first-best policy involves a two-part tariff composed of a penalty levied on contaminated units to internalize the invasive species externality, plus a fee collected on all imported units to cover inspection costs.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 56 (2008)
Issue (Month): 3 (November)
Pages: 286-290

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Handle: RePEc:eee:jeeman:v:56:y:2008:i:3:p:286-290

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Web page: http://www.elsevier.com/locate/inca/622870

Related research

Keywords: First-best policy Import risk Invasive species Tariffs Trade policy;

References

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  1. Margolis, Michael & Shogren, Jason, 2004. "How Trade Politics Affect Invasive Species Control," Discussion Papers, Resources For the Future dp-04-07, Resources For the Future.
  2. McAusland, Carol & Costello, Christopher, 2004. "Avoiding invasives: trade-related policies for controlling unintentional exotic species introductions," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 48(2), pages 954-977, September.
  3. Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 77(6), pages 1005-10, Nov./Dec..
  4. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 85(4), pages 964-975.
  5. Shogren, Jason F. & Tschirhart, John, 2005. "Integrating ecology and economics to address bioinvasions," Ecological Economics, Elsevier, Elsevier, vol. 52(3), pages 267-271, February.
  6. Costello, Christopher & Springborn, Michael & McAusland, Carol & Solow, Andrew, 2007. "Unintended biological invasions: Does risk vary by trading partner?," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 54(3), pages 262-276, November.
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Citations

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Cited by:
  1. Linda Fernandez & Glenn Sheriff, 2013. "Optimal Border Policies for Invasive Species Under Asymmetric Information," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 56(1), pages 27-45, September.
  2. Michael Margolis & Jason Shogren, 2012. "Disguised Protectionism, Global Trade Rules and Alien Invasive Species," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 51(1), pages 105-118, January.
  3. Giaccaria Sergio & Dalmazzone Silvana, 2010. "Socio-economic drivers of biological invasions. A worldwide, bio-geographical analysis of trade flows and local environmental quality," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 201003, University of Turin.
  4. Ferrier, Peyton, 2014. "The Effects of Phytosanitary Regulations on U.S. Imports of Fresh Fruits and Vegetables," Economic Research Report, United States Department of Agriculture, Economic Research Service 176199, United States Department of Agriculture, Economic Research Service.

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