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Estimating the Social Welfare Effects of New Zealand Apple Imports

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  • Cook, David C.
  • Liu, Shuang
  • Fraser, Rob W.
  • Siddique, Abu-Baker
  • Paini, Dean R.

Abstract

This paper provides a demonstration of how a comprehensive economic framework, which takes into account both the gains from trade and the costs of invasive species outbreaks, can inform decision-makers when making quarantine decisions. Using the theoretical framework developed in Cook and Fraser (2008) an empirical estimation is made of the economic welfare consequences for Australia of allowing quarantine-restricted trade in New Zealand apples to take place. The results suggest the returns to Australian society from importing New Zealand apples are likely to be negative. The price differential between the landed product with SPS measures in place and the autarkic price is insufficient to outweigh the increase in expected damage resulting from increased fire blight risk. As a consequence, this empirical analysis suggests the net benefits created by opening up this trade are marginal.

Suggested Citation

  • Cook, David C. & Liu, Shuang & Fraser, Rob W. & Siddique, Abu-Baker & Paini, Dean R., 2010. "Estimating the Social Welfare Effects of New Zealand Apple Imports," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91957, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc10:91957
    DOI: 10.22004/ag.econ.91957
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    1. Glyn Wittwer & Simon McKirdy & Ryan Wilson, 2005. "Regional economic impacts of a plant disease incursion using a general equilibrium approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 75-89, March.
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    Cited by:

    1. Olaniyi, Oladokun Nafiu & Szulczyk, Kenneth R., 2020. "Estimating the economic damage and treatment cost of basal stem rot striking the Malaysian oil palms," Forest Policy and Economics, Elsevier, vol. 116(C).
    2. Yangyuyu Luo & Sayeeda Bano, 2020. "Modelling New Zealand dairy products: evidence on export survival and duration," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 605-631, July.
    3. David C. Cook & Jean-Philippe Aurambout & Oscar N. Villalta & Shuang Liu & Jacqueline Edwards & Savi Maharaj, 2016. "A bio-economic ‘war game’ model to simulate plant disease incursions and test response strategies at the landscape scale," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 37-48, February.
    4. David Cook & Jean-Philippe Aurambout & Oscar Villalta & Shuang Liu & Jacqueline Edwards & Savi Maharaj, 2016. "A bio-economic ‘war game’ model to simulate plant disease incursions and test response strategies at the landscape scale," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 37-48, February.
    5. Cook, David C. & Fraser, Rob W. & Weinert, Andrew S., 2013. "An Example of How Chemical Regulation is Affecting Biosecurity Policy-Making: Mediterranean Fruit Fly in Western Australia," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152142, Australian Agricultural and Resource Economics Society.
    6. Sayeeda Bano & Frank Scrimgeour, 2017. "New Zealand and Indian Trade in Agricultural and Manufactured Products: An Empirical Analysis," Working Papers in Economics 17/26, University of Waikato.
    7. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    8. David C Cook & Shuang Liu & Jacqueline Edwards & Oscar N Villalta & Jean-Philippe Aurambout & Darren J Kriticos & Andre Drenth & Paul J De Barro, 2012. "Predicting the Benefits of Banana Bunchy Top Virus Exclusion from Commercial Plantations in Australia," PLOS ONE, Public Library of Science, vol. 7(8), pages 1-9, August.
    9. Kenneth R. Szulczyk, 2023. "Estimating the economic costs and mitigation of rice blast infecting the Malaysian paddy fields," SN Business & Economics, Springer, vol. 3(1), pages 1-21, January.

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