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Tariff Escalation and Invasive Species Damages

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  • Tu, Anh
  • Beghin, John C.
  • Gozlan, Estelle

Abstract

We 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.

Suggested Citation

  • Tu, Anh & Beghin, John C. & Gozlan, Estelle, 2005. "Tariff Escalation and Invasive Species Damages," Staff General Research Papers Archive 12442, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12442
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    2. Lichtenberg, Erik & Olson, Lars J., 2020. "Tariffs and the risk of invasive pest introductions in commodity imports: Theory and empirical evidence," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    3. Warziniack, Travis W. & Finnoff, David & Shogren, Jason F., 2013. "Public economics of hitchhiking species and tourism-based risk to ecosystem services," Resource and Energy Economics, Elsevier, vol. 35(3), pages 277-294.

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    Keywords

    agro-forestry products; exotic pest; international trade; invasive species; tariff escalation; trade flows;
    All these keywords.

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