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Tariff Escalation and Invasive Species Risk

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  • Anh Tu
  • John C. Beghin
  • Estelle Gozlan

Abstract

We investigate the interface between trade and invasive species (IS) risk, focusing on the existing tariff escalation in agro-forestry product markets and its implication for IS risk. Tariff escalation in processed agro-forestry products exacerbates the risk of IS by biasing trade flows toward increased trade of primary commodity flows and against processed-product trade. We show that reducing tariff escalation by lowering the tariff on processed goods increases allocative efficiency and reduces the IS externality, a win-win situation. We also identify policy menus for trade reforms involving tariffs on both raw input and processed goods, leading to win-win situations.

Suggested Citation

  • Anh Tu & John C. Beghin & Estelle Gozlan, 2005. "Tariff Escalation and Invasive Species Risk," Center for Agricultural and Rural Development (CARD) Publications 05-wp407, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:05-wp407
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    References listed on IDEAS

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    2. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service.
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    11. 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.
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    More about this item

    Keywords

    agro-forestry products; exotic pest; international trade; invasive species; tariff escalation; trade flows.;

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