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Combining Risk Assessment and Economics in Managing a Sanitary-Phytosanitary Risk

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  • Norbert L. W. Wilson
  • Jes�s Ant�n

Abstract

The Agreement on the Application of Sanitary and Phytosanitary (SPS) Measures provides guidelines for countries to protect domestic production from pests and diseases. The guidelines permit consideration of consumer welfare. We find an optimal set of SPS measures considering total welfare and mitigation strategies. Our model suggests that it is optimal and less restrictive to apply mitigation strategies first and then an additional smaller tariff if necessary. Relative cost of mitigation determines the amount of the mitigation strategies applied in the importing and exporting countries. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00847.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 88 (2006)
Issue (Month): 1 ()
Pages: 194-202

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Handle: RePEc:oup:ajagec:v:88:y:2006:i:1:p:194-202

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Cited by:
  1. Olson, Lars J. & Roy, Santanu, 2008. "Dynamic Sanitary and Phytosanitary Trade Policy," Working Papers 43395, University of Maryland, Department of Agricultural and Resource Economics.
  2. Ferrier, Peyton, 2010. "Irradiation as a quarantine treatment," Food Policy, Elsevier, vol. 35(6), pages 548-555, December.
  3. Lawley, Chad, 2008. "Non-indigenous Species and Preemptive Trade Policy," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6111, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. van Tongeren, Frank & Beghin, John C. & Marette, Stephan, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," Staff General Research Papers 13146, Iowa State University, Department of Economics.
  5. Schlueter, Simon W. & Wieck, Christine & Heckelei, Thomas, 2009. "Regulatory SPS instruments in meat trade," Discussion Papers 56972, University of Bonn, Institute for Food and Resource Economics.
  6. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.

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