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Dynamic Sanitary and Phytosanitary Trade Policy

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Author Info
Olson, Lars J.
Roy, Santanu

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Abstract

This paper characterizes the optimal use of sanitary and phytosanitary standards to prevent the introduction of harmful pests and diseases through international trade. Because established pest and disease infestations grow and spread over time their introduction has intertemporal consequences. In a dynamic economic model, an efficient trade policy balances the costs of SPS measures against the discounted stream of the costs of control and social damages that are avoided by using SPS measures, where future growth and spread of any established infestation is accounted for. We examine when phytosanitary trade policy makes good economic sense, when it is efficient to provide full protection against pests and diseases, and when restrictive, but not fully protective trade policy is efficient.

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Publisher Info
Paper provided by University of Maryland, Department of Agricultural and Resource Economics in its series Working Papers with number 43395.

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Date of creation: 19 Sep 2008
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Handle: RePEc:ags:umdrwp:43395

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Related research
Keywords: Agricultural and Food Policy; International Relations/Trade; Resource /Energy Economics and Policy;

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References listed on IDEAS
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  1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
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  2. McAusland, Carol & Costello, Christopher, 2004. "Avoiding invasives: trade-related policies for controlling unintentional exotic species introductions," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 954-977, September. [Downloadable!] (restricted)
  3. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Economie Internationale, CEPII research center, issue 3Q, pages 107-130. [Downloadable!]
    Other versions:
  4. Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April. [Downloadable!]
  5. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  6. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(4), pages 964-975, November. [Downloadable!] (restricted)
  7. Calvin, Linda & Krissoff, Barry, 1998. "Technical Barriers To Trade: A Case Study Of Phytosanitary Barriers And U.S. - Japanese Apple Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December. [Downloadable!]
  8. Margolis, Michael & Shogren, Jason F. & Fischer, Carolyn, 2005. "How trade politics affect invasive species control," Ecological Economics, Elsevier, vol. 52(3), pages 305-313, February. [Downloadable!] (restricted)
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  9. Albert K. A. Acquaye & Julian M. Alston & Hyunok Lee & Daniel A. Sumner, 2005. "Economic Consequences of Invasive Species Policies in the Presence of Commodity Programs: Theory and Application to Citrus Canker," Review of Agricultural Economics, American Agricultural Economics Association, vol. 27(3), pages 498-504, 09. [Downloadable!] (restricted)
  10. Olson, Lars J & Roy, Santanu, 2002. " The Economics of Controlling a Stochastic Biological Invasion," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(5), pages 1311-16. [Downloadable!] (restricted)
  11. Whalley, John, 1991. "The Interface between Environmental and Trade Policies," Economic Journal, Royal Economic Society, vol. 101(405), pages 180-89, March. [Downloadable!] (restricted)
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