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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Margolis, Michael & Shogren, Jason F. & Fischer, Carolyn, 2005.
"How trade politics affect invasive species control,"
Elsevier, vol. 52(3), pages 305-313, February.
- Margolis, Michael & Shogren, Jason, 2004. "How Trade Politics Affect Invasive Species Control," Discussion Papers dp-04-07, Resources For the Future.
- 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.
- J. N. Bhagwati & T. N. Srinivasan, 1969. "Optimal Intervention to Achieve Non-Economic Objectives," Review of Economic Studies, Oxford University Press, vol. 36(1), pages 27-38.
- Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1005-1010, Nov./Dec..
- J. N. Bhagwati & V. K. Ramaswami & T. N. Srinivasan, 1968. "Domestic Distortions, Tariffs and the Theory of Optimum Subsidy: Some Further Results," Working papers 29, Massachusetts Institute of Technology (MIT), Department of Economics.
- 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. Full references (including those not matched with items on IDEAS)