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A second look at managing import risk from invasive species

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  • Mérel, Pierre R.
  • Carter, Colin A.

Abstract

This paper investigates optimal trade-related policies for managing import risk arising from invasive species. We find analytical evidence that when a cleaning technology is available for foreign exporters and the optimal level of import inspections is strictly positive, a penalty imposed on contaminated imports is likely to be superior to a simple tariff policy designed to reduce the overall volume of trade, for low levels of the inspection cost. The first-best policy involves a two-part tariff composed of a penalty levied on contaminated units to internalize the invasive species externality, plus a fee collected on all imported units to cover inspection costs.

Suggested Citation

  • Mérel, Pierre R. & Carter, Colin A., 2008. "A second look at managing import risk from invasive species," Journal of Environmental Economics and Management, Elsevier, vol. 56(3), pages 286-290, November.
    • Handle: RePEc:eee:jeeman:v:56:y:2008:i:3:p:286-290
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    1. 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.
    2. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 964-975.
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    5. Shogren, Jason F. & Tschirhart, John, 2005. "Integrating ecology and economics to address bioinvasions," Ecological Economics, Elsevier, vol. 52(3), pages 267-271, February.
    6. Costello, Christopher & Springborn, Michael & McAusland, Carol & Solow, Andrew, 2007. "Unintended biological invasions: Does risk vary by trading partner?," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 262-276, November.
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    Cited by:

    1. Michael Margolis & Jason Shogren, 2012. "Disguised Protectionism, Global Trade Rules and Alien Invasive Species," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 105-118, January.
    2. Linda Fernandez & Glenn Sheriff, 2013. "Optimal Border Policies for Invasive Species Under Asymmetric Information," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 27-45, September.
    3. Carson Reeling & Richard D. Horan, 2018. "Economic Incentives for Managing Filterable Biological Pollution Risks from Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(3), pages 651-671, July.
    4. Dalmazzone, Silvana & Giaccaria, Sergio, 2014. "Economic drivers of biological invasions: A worldwide, bio-geographic analysis," Ecological Economics, Elsevier, vol. 105(C), pages 154-165.
    5. Giaccaria Sergio & Dalmazzone Silvana, 2010. "Socio-economic drivers of biological invasions. A worldwide, bio-geographical analysis of trade flows and local environmental quality," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201003, University of Turin.
    6. Jean-Christophe Bureau & Sébastien Jean, 2013. "International Agricultural Trade and Negotiations : Coping with a New Landscape [Commerce et négociations agricoles commerciales: s'ajuster au nouvel environnement]," Working Papers hal-01592099, HAL.
    7. Anke Leroux & Donald Maclaren, 2011. "The Optimal Time to Remove Quarantine Bans Under Uncertainty: The Case of Australian Bananas," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 140-152, March.
    8. Jardine, Sunny L. & Sanchirico, James N., 2018. "Estimating the cost of invasive species control," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 242-257.
    9. Bate, Andrew M. & Jones, Glyn & Kleczkowski, Adam & MacLeod, Alan & Naylor, Rebecca & Timmis, Jon & Touza, Julia & White, Piran C.L., 2016. "Modelling the impact and control of an infectious disease in a plant nursery with infected plant material inputs," Ecological Modelling, Elsevier, vol. 334(C), pages 27-43.
    10. Ferrier, Peyton, 2014. "The Effects of Phytosanitary Regulations on U.S. Imports of Fresh Fruits and Vegetables," Economic Research Report 176199, United States Department of Agriculture, Economic Research Service.
    11. Batabyal, Amitrajeet & Beladi, Hamid, 2013. "Ship inspections in invasive species management: Alternate regimes and their properties," MPRA Paper 72269, University Library of Munich, Germany.
    12. Lichtenberg, Erik & Olson, Lars J., 2020. "Tariffs and the risk of invasive pest introductions in commodity imports: Theory and empirical evidence," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).

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