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Benefit cost analysis of an import access request

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  • Cook, David C.

Abstract

Invasive species outbreaks are often unintended side effects of trade. In this paper partial equilibrium trade models and stochastic bioeconomic impact simulation models are combined to present a benefit cost analysis template to assess market access requests. The template is used to assess the likely regional economic welfare implications of a decision by Australian biosecurity regulators to allow the Chilean table grape industry access to the national table grape market. We show that consumption benefits expected to accrue to Western Australia are exceeded by increases in likely invasive species damage resulting from grape imports, implying that insufficient consumer gains are grounds to deny market access.

Suggested Citation

  • Cook, David C., 2008. "Benefit cost analysis of an import access request," Food Policy, Elsevier, vol. 33(3), pages 277-285, June.
  • Handle: RePEc:eee:jfpoli:v:33:y:2008:i:3:p:277-285
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    References listed on IDEAS

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    1. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
    2. Vald├ęs, Alberto & Zietz, Joachim A., 1980. "Agricultural protection in OECD countries: its cost to less-developed countries," Research reports 21, International Food Policy Research Institute (IFPRI).
    3. Peterson, Everett B. & Orden, David, 2006. "Linking Risk and Economic Assessments in the Analysis of Plant Pest Regulations: The Case of U.S. Imports of Mexican Avocados," 2006 Annual meeting, July 23-26, Long Beach, CA 21339, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Zhao, Xueyan & Anderson, Kym & Wittwer, Glyn, 2003. "Who gains from Australian generic wine promotion and R&D?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), June.
    5. Cook, D. C. & Fraser, R. W., 2002. "Exploring the regional implications of interstate quarantine policies in Western Australia," Food Policy, Elsevier, vol. 27(2), pages 143-157, April.
    6. Pimentel, David & Zuniga, Rodolfo & Morrison, Doug, 2005. "Update on the environmental and economic costs associated with alien-invasive species in the United States," Ecological Economics, Elsevier, vol. 52(3), pages 273-288, February.
    7. Timothy E. Josling & Donna Roberts & David Orden, 2004. "Food Regulation and Trade: Toward a Safe and Open Global System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 347.
    8. Cook, David C., 2005. "The 'Paradox of Thrips': Identifying a Critical Level of Investment in Pest Exclusion Activities in Western Australia," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 13.
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    Cited by:

    1. Carrasco, L. Roman & Cook, David & Baker, Richard & MacLeod, Alan & Knight, Jon D. & Mumford, John D., 2012. "Towards the integration of spread and economic impacts of biological invasions in a landscape of learning and imitating agents," Ecological Economics, Elsevier, vol. 76(C), pages 95-103.

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