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Dynamic Sanitary and Phytosanitary Trade Policy

Author

Listed:
  • Lars J. Olson

    () (University of Maryland, College Park, Maryland.)

  • Santanu Roy

    () (Southern Methodist University, Dallas, Texas.)

Abstract

This paper characterizes the optimal use of sanitary and phytosanitary standards to prevent the introduction of harmful pests and diseases through international trade. Because established pest and disease infestations grow and spread over time their introduction has intertemporal consequences. In a dynamic economic model, an efficient trade policy balances the costs of SPS measures against the discounted stream of the costs of control and social damages that are avoided by using SPS measures, where future growth and spread of any established infestation is accounted for. We examine when phytosanitary trade policy makes good economic sense, when it is efficient to provide full protection against pests and diseases, and when restrictive, but not fully protective trade policy is efficient.

Suggested Citation

  • Lars J. Olson & Santanu Roy, 2008. "Dynamic Sanitary and Phytosanitary Trade Policy," Departmental Working Papers 0806, Southern Methodist University, Department of Economics.
  • Handle: RePEc:smu:ecowpa:0806
    as

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    File URL: ftp://ftp1.economics.smu.edu/WorkingPapers/2008/SROY/SROY-2008-08-2.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Saggi, Kamal & Wu, Mark, 2017. "Trade and Agricultural Disease: Import Restrictions in the Wake of the India–Agricultural Products Dispute," World Trade Review, Cambridge University Press, vol. 16(02), pages 279-302, April.
    2. Morteza Chalak & Maksym Polyakov & David J. Pannell, 2017. "Economics of Controlling Invasive Species: A Stochastic Optimization Model for a Spatial-dynamic Process," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 123-139.
    3. Dalmazzone, Silvana & Giaccaria, Sergio, 2014. "Economic drivers of biological invasions: A worldwide, bio-geographic analysis," Ecological Economics, Elsevier, vol. 105(C), pages 154-165.
    4. Liu, Yanxu & Sims, Charles, 2016. "Spatial-dynamic externalities and coordination in invasive species control," Resource and Energy Economics, Elsevier, vol. 44(C), pages 23-38.

    More about this item

    Keywords

    International trade; pests and diseases; invasive species; sanitary and phytosanitary trade policy.;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • F18 - International Economics - - Trade - - - Trade and Environment
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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