How Trade Politics Affect Invasive Species Control
AbstractTrade 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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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-04-07.
Date of creation: 11 Feb 2004
Date of revision:
invasive species; protectionism; tariff; political economy;
Other versions of this item:
- Margolis, Michael & Shogren, Jason F. & Fischer, Carolyn, 2005. "How trade politics affect invasive species control," Ecological Economics, Elsevier, vol. 52(3), pages 305-313, February.
- 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 Accounts and Accounting; Environmental Equity; Population Growth
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
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