Least-Cost Tradeable Risk Permit Scheme for Controlling Risk of Introducing Invasive Alien Species by Shipping
AbstractThe probability of alienspecies invasion is reasonably characterized by a weakest link technology. A tradeableriskpermit system for shippers has been proposed as a means of efficiently reducing this invasion probability. Economic jointness arising from statistical independence among private risks for the weakest link technology implies that the risk instrument to be traded should be linear in the log of firm success probabilities, rather than linear in firm success probabilities.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 35017.
Date of creation: 29 Mar 2012
Date of revision:
Publication status: Published in Ecological Economics, December 2008, vol. 68 no. 1-2, pp. 532-535
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
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biological control; independence; linearize; permit trading; risk abatement; uniformly mixed pollutant; weakest link;
Other versions of this item:
- Feng, Hong Li & Hennessy, David A., 2008. "Least-cost tradeable risk permit scheme for controlling risk of introducing invasive alien species by shipping," Ecological Economics, Elsevier, vol. 68(1-2), pages 532-535, December.
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
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- Pimentel, David & Zuniga, Rodolfo & Morrison, Doug, 2005. "Update on the environmental and economic costs associated with alien-invasive species in the United States," Ecological Economics, Elsevier, vol. 52(3), pages 273-288, February.
- Horan, Richard D. & Lupi, Frank, 2005. "Tradeable risk permits to prevent future introductions of invasive alien species into the Great Lakes," Ecological Economics, Elsevier, vol. 52(3), pages 289-304, February.
- Jones, Kristin Roti & Corona, Joel P., 2008. "An ambient tax approach to invasive species," Ecological Economics, Elsevier, vol. 64(3), pages 534-541, January.
- Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
- Lupi, Frank & Horan, Richard D., 2005. "Economic Incentives for Controlling Trade-Related Biological Invasions in the Great Lakes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), April.
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