Tariff Escalation and Invasive Species Risk
AbstractWe investigate the interface between trade and invasive species (IS) risk, focusing on the existing tariff escalation in agro-forestry product markets and its implication for IS risk. Tariff escalation in processed agro-forestry products exacerbates the risk of IS by biasing trade flows toward increased trade of primary commodity flows and against processed-product trade. We show that reducing tariff escalation by lowering the tariff on processed goods increases allocative efficiency and reduces the IS externality, 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 InfoPaper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 05-wp407.
Date of creation: Oct 2005
Date of revision:
agro-forestry products; exotic pest; international trade; invasive species; tariff escalation; trade flows.;
Other versions of this item:
- Anh Tu & John C. Beghin & Estelle Gozlan, 2005. "Tariff Escalation and Invasive Species Risk," Center for Agricultural and Rural Development (CARD) Publications 05-wp407, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Tu, Anh Thuy & Beghin, John C., 2005. "Tariff Escalation and Invasive Species Risk," 2005 Annual meeting, July 24-27, Providence, RI 19518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- NEP-ALL-2006-04-22 (All new papers)
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