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Harnessing Enforcement Leverage at the Border to Minimize Biological Risk from International Live Species Trade

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  • Springborn, Michael R.
  • Lindsay, Amanda R.
  • Epanchin-Niell, Rebecca

    (Resources for the Future)

Abstract

Allocating inspection resources over a diverse set of imports to prevent entry of plant pests and pathogens presents a substantial policy design challenge. We model inspections of live plant imports and producer responses to inspections using a “state-dependent” monitoring and enforcement model. We capture exporter abatement response to a set of feasible inspection policies from the regulator. Conditional on this behavioral response, we solve the regulator’s problem of selecting the parameters for the state-dependent monitoring regime to minimize entry of infested shipments. We account for exporter heterogeneity, fixed penalties for noncompliance, imperfect abatement control and imperfect inspections at the border. Overall, we estimate that state-dependent targeting (based on historical interceptions) cuts the rate of infested shipments that are accepted by one-fifth, relative to uniformly allocated inspections.

Suggested Citation

  • Springborn, Michael R. & Lindsay, Amanda R. & Epanchin-Niell, Rebecca, 2016. "Harnessing Enforcement Leverage at the Border to Minimize Biological Risk from International Live Species Trade," RFF Working Paper Series dp-16-34, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-16-34
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    References listed on IDEAS

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    1. Greenberg, Joseph, 1984. "Avoiding tax avoidance: A (repeated) game-theoretic approach," Journal of Economic Theory, Elsevier, vol. 32(1), pages 1-13, February.
    2. Harford, Jon D., 1991. "Measurement error and state-dependent pollution control enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 67-81, July.
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    4. Harford, Jon D. & Harrington, Winston, 1991. "A reconsideration of enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 45(3), pages 391-395, August.
    5. Holly A. Ameden & Peter C. Boxall & Sean B. Cash & D. Angele Vickers, 2009. "An Agent‐Based Model of Border Enforcement for Invasive Species Management," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(4), pages 481-496, December.
    6. Ameden, Holly A. & Cash, Sean B. & Zilberman, David, 2007. "Border Enforcement and Firm Response in the Management of Invasive Species," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(Special), pages 1-12, October.
    7. Springborn, Michael R., 2014. "Risk aversion and adaptive management: Insights from a multi-armed bandit model of invasive species risk," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 226-242.
    8. Friesen, Lana, 2003. "Targeting enforcement to improve compliance with environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 72-85, July.
    9. Raymond, Mark, 1999. "Enforcement leverage when penalties are restricted: a reconsideration under asymmetric information," Journal of Public Economics, Elsevier, vol. 73(2), pages 289-295, August.
    10. Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
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    Cited by:

    1. Cuicui Chen & Rebecca S. Epanchin‐Niell & Robert G. Haight, 2018. "Optimal Inspection of Imports to Prevent Invasive Pest Introduction," Risk Analysis, John Wiley & Sons, vol. 38(3), pages 603-619, March.

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    More about this item

    Keywords

    state-dependent enforcement; invasive species; international trade; optimal inspections; externalities;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • 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

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