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How Trade Politics Affect Invasive Species Control

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Author Info
Margolis, Michael
Shogren, Jason

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Abstract

Trade has become the main mode of transport for many invasive species including diseases and agricultural pests. Most species are brought to their new homes unintentionally, which constitute a market failure rooted in international trade. Unless it is practical to drive invasion risk to zero, the external costs may justify a tariff. In this paper we analyze the political process likely to govern the formation of tariffs so justified, using a straightforward incorporation of an invasive species externality into Grossman and Helpman’s well-known political economy model. We show our measure of disguised protectionism—the gap between the optimal tariff and that set in the equilibrium of the political economy game—is equal to the tariff that would be set if there were no invasive species and no international disciplines on trade policy. The informational needs required to distinguish disguised protectionism from legitimate public-goods protection are formidable.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-04-07.

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Date of creation: 11 Feb 2004
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Handle: RePEc:rff:dpaper:dp-04-07

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Related research
Keywords: invasive species; protectionism; tariff; political economy;

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Find related papers by JEL classification:
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  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. Pinelopi Koujianou Goldberg & Giovanni Maggi, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December. [Downloadable!] (restricted)
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  3. 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)
  4. Gawande, Kishore, 1997. "US non-tariff barriers as privately provided public goods," Journal of Public Economics, Elsevier, vol. 64(1), pages 61-81, April. [Downloadable!] (restricted)
  5. Bernheim, B Douglas & Whinston, Michael D, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 1-31, February. [Downloadable!] (restricted)
  6. Devashish Mitra & Dimitrios D. Thomakos & Mehmet A. Ulubaşoglu, 2002. ""Protection For Sale" In A Developing Country: Democracy Vs. Dictatorship," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 497-508, August. [Downloadable!] (restricted)
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  1. 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. [Downloadable!]
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  2. Tu, Anh & Beghin, John C. & Gozlan, Estelle, 2005. "Tariff Escalation and Invasive Species Damages," Staff General Research Papers 12442, Iowa State University, Department of Economics.
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  3. Ranjan, Ram, 2005. "Invasive Species Management through Tariffs: Are Prevention and Protection Synonymous?," 2005 Annual meeting, July 24-27, Providence, RI 19515, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  4. An-Sing Chen & Hui-Jyuan Gao & Mark Leung, . "Is Trading Imbalance a Better Explanatory Factor in the Volatility Process? Intraday and Daily Evidence from E-mini S&P 500 Index Futures and Information-Based Hypotheses," Working Papers 0039, College of Business, University of Texas at San Antonio. [Downloadable!]
  5. Olson, Lars J. & Roy, Santanu, 2008. "Dynamic Sanitary and Phytosanitary Trade Policy," Working Papers 43395, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
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  6. Allison Davis & Klaus Moeltner, 2009. "Valuing the Prevention of an Infestation: The Threat of the New Zealand Mud Snail in Northern Nevada," Working Papers 09-001, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics. [Downloadable!]
  7. 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!]
  8. Prestemon, Jeffrey P. & Zhu, Shushuai & Turner, James A. & Buongiorno, Joseph & Li, Ruhong, 2006. "Forest Product Trade Impacts of an Invasive Species: Modeling Structure and Intervention Trade-Offs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April. [Downloadable!]
  9. Mwebaze, P. & Monaghan, J. & Revell, B. & Hare, M. & MacLeod, A. & Spence, N., 2008. "Modeling The Risks Associated With Increased Importation Of Fresh Produce From Emerging Supply Sources To The Uk," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43963, European Association of Agricultural Economists. [Downloadable!]
  10. Kimberly Burnett & Sean D’Evelyn & Brooks Kaiser & Porntawee Nantamanasikarn & James Roumasset, 2007. "Beyond the Lamppost: Optimal Prevention and Control of the Brown Treesnake in Hawaii," Working Papers 200714, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
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