Dynamic Sanitary and Phytosanitary Trade Policy
AbstractThis paper characterizes the optimal use of sanitary and phytosanitary standards to prevent the introduction of harmful pests and diseases through international trade. Because established pest and disease infestations grow and spread over time their introduction has intertemporal consequences. In a dynamic economic model, an efficient trade policy balances the costs of SPS measures against the discounted stream of the costs of control and social damages that are avoided by using SPS measures, where future growth and spread of any established infestation is accounted for. We examine when phytosanitary trade policy makes good economic sense, when it is efficient to provide full protection against pests and diseases, and when restrictive, but not fully protective trade policy is efficient.
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Bibliographic InfoPaper provided by Southern Methodist University, Department of Economics in its series Departmental Working Papers with number 0806.
Date of creation: Aug 2008
Date of revision:
Contact details of provider:
Postal: Department of Economics, P.O. Box 750496, Southern Methodist University, Dallas, TX 75275-0496
Web page: http://www.smu.edu/economics
International trade; pests and diseases; invasive species; sanitary and phytosanitary trade policy.;
Other versions of this item:
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- F18 - International Economics - - Trade - - - Trade and Environment
- D9 - Microeconomics - - Intertemporal Choice
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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