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Invasive Species Management Through Tariffs: Are Prevention and Protection Synonymous?

  • Ranjan, Ram
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    This Paper designs a political economy model of invasive species management in order to explore the effectiveness of tariffs in mitigating the risk of invasion. The revenue interests of the government together with the interests of the lobby group competing with the imported agricultural commodity, that is believed to be the vector of invasive species, are incorporated in a Nash Bargaining game. The government, however, also considers the impact of tariffs on long run risks of invasion and decides optimal tariffs based upon its welfare in the pre and post-invasion scenarios. Along with the size of the lobby group, which is a function of the slope of the demand and supply curves, the weights assigned to the various components in the government welfare function too play a key role in influencing the extent to which tariffs could be an effective policy tool for invasive species management.

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    File URL: http://purl.umn.edu/15642
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    Paper provided by University of Florida, International Agricultural Trade and Policy Center in its series Working Papers with number 15642.

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    Date of creation: 2004
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    Handle: RePEc:ags:uflowp:15642
    Contact details of provider: Web page: http://www.iatpc.ifas.ufl.edu/

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    1. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
    2. 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.
    3. 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.
    4. Clarke, Harry R. & Reed, William J., 1994. "Consumption/pollution tradeoffs in an environment vulnerable to pollution-related catastrophic collapse," Journal of Economic Dynamics and Control, Elsevier, vol. 18(5), pages 991-1010, September.
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