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Dynamic sanitary and phytosanitary trade policy

  • Olson, Lars J.
  • Roy, Santanu

This 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 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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File URL: http://www.sciencedirect.com/science/article/B6WJ6-4YX7K7D-1/2/ffe16bff5c4549d4d9989e58246caea8
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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 60 (2010)
Issue (Month): 1 (July)
Pages: 21-30

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Handle: RePEc:eee:jeeman:v:60:y:2010:i:1:p:21-30
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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  1. Lars Olson & Santanu Roy, 2008. "Controlling a biological invasion: a non-classical dynamic economic model," Economic Theory, Springer, vol. 36(3), pages 453-469, September.
  2. 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.
  3. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
  4. Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
  5. 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.
  6. 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.
  7. Albert K. A. Acquaye & Julian M. Alston & Hyunok Lee & Daniel A. Sumner, 2005. "Economic Consequences of Invasive Species Policies in the Presence of Commodity Programs: Theory and Application to Citrus Canker ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 498-504.
  8. Calvin, Linda & Krissoff, Barry, 1998. "Technical Barriers To Trade: A Case Study Of Phytosanitary Barriers And U.S. - Japanese Apple Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
  9. Beghin, John C. & Bureau, Jean-Christophe, 2005. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Staff General Research Papers 12740, Iowa State University, Department of Economics.
  10. repec:cup:cbooks:9780521322249 is not listed on IDEAS
  11. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-37, September.
  12. Glauber, Joseph W. & Narrod, Clare A., 2001. "A Rational Risk Policy for Regulating Plant Diseases and Pests," 2001 Conference (45th), January 23-25, 2001, Adelaide 125644, Australian Agricultural and Resource Economics Society.
  13. Whalley, John, 1991. "The Interface between Environmental and Trade Policies," Economic Journal, Royal Economic Society, vol. 101(405), pages 180-89, March.
  14. Norbert L. W. Wilson & Jes�s Ant�n, 2006. "Combining Risk Assessment and Economics in Managing a Sanitary-Phytosanitary Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 194-202.
  15. Lars J. Olson & Santanu Roy, 2002. "The Economics of Controlling a Stochastic Biological Invasion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1311-1316.
  16. repec:cup:cbooks:9780521311120 is not listed on IDEAS
  17. Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  18. Philip L. Paarlberg & John G. Lee, 1998. "Import Restrictions in the Presence of a Health Risk: An Illustration Using FMD," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 175-183.
  19. repec:reg:ranaly:408 is not listed on IDEAS
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