A second look at managing import risk from invasive species
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.
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- Margolis, Michael & Shogren, Jason, 2004.
"How Trade Politics Affect Invasive Species Control,"
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- 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.
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- Shogren, Jason F. & Tschirhart, John, 2005. "Integrating ecology and economics to address bioinvasions," Ecological Economics, Elsevier, vol. 52(3), pages 267-271, February.
- 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.
- 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.
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