Tariff Escalation and Invasive Species Damages
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 Iowa State University, Department of Economics in its series Staff General Research Papers with number 12442.
Date of creation: 01 Oct 2005
Date of revision:
Publication status: Published in Ecological Economics, November 2008, vol. 67 no. 4, pp. 619-629
Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
agro-forestry products; exotic pest; international trade; invasive species; tariff escalation; trade flows;
Other versions of this item:
- NEP-AGR-2005-10-29 (Agricultural Economics)
- NEP-ALL-2005-10-29 (All new papers)
- NEP-ENV-2005-10-29 (Environmental Economics)
- NEP-INT-2005-10-29 (International Trade)
- NEP-RES-2005-10-29 (Resource Economics)
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