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An empirical model of optimal import phytosanitary inspection

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  • Surkov, Ilya V.
  • Oude Lansink, Alfons G.J.M.
  • van Kooten, Olaf

Abstract

This paper presents an empirical model of optimal budget allocation for import inspection of imported commodities. In this model, the budget constrained inspecting Agency wants to minimize the expected pest costs related to import trade pathways. The model is applied to the problem of budget allocation for inspection of chrysanthemum cuttings imported to the Netherlands. The numerical results imply that under a budget constraint, resources should be first allocated for inspection of pathways with the greatest expected pest costs. Pathways with lower expected pest costs should receive less or no resources. The inspecting Agency has to trade off risks between inspected and non-inspected pathways.

Suggested Citation

  • Surkov, Ilya V. & Oude Lansink, Alfons G.J.M. & van Kooten, Olaf, 2006. "An empirical model of optimal import phytosanitary inspection," 2006 Annual meeting, July 23-26, Long Beach, CA 21253, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea06:21253
    DOI: 10.22004/ag.econ.21253
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    File URL: http://ageconsearch.umn.edu/record/21253/files/sp06su02.pdf
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    References listed on IDEAS

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    1. Batabyal, Amitrajeet A. & Beladi, Hamid, 2006. "International trade and biological invasions: A queuing theoretic analysis of the prevention problem," European Journal of Operational Research, Elsevier, vol. 170(3), pages 758-770, May.
    2. Amit Batabyal & Peter Nijkamp, 2005. "On Container Versus Time Based Inspection Policies in Invasive Species Management," ERSA conference papers ersa05p162, European Regional Science Association.
    3. Richard D. Horan & Charles Perrings & Frank Lupi & Erwin H. Bulte, 2002. "Biological Pollution Prevention Strategies under Ignorance:The Case of Invasive Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1303-1310.
    4. Perrings, Charles, 2005. "Mitigation and adaptation strategies for the control of biological invasions," Ecological Economics, Elsevier, vol. 52(3), pages 315-325, February.
    5. Lars J. Olson & Santanu Roy, 2005. "On Prevention and Control of an Uncertain Biological Invasion ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 491-497.
    6. Barrett, James & Segerson, Kathleen, 1997. "Prevention and Treatment in Environmental Policy Design," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 196-213, June.
    7. Amit Batabyal & Hamid Beladi & Won Koo, 2005. "Maritime Trade, Biological Invasions, and the Properties of Alternate Inspection Regimes," ERSA conference papers ersa05p164, European Regional Science Association.
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    Keywords

    International Relations/Trade;

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