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Trade, the Damage from Alien Species, and the Effects of Protectionism Under Alternate Market Structures

  • Amitrajeet A. Batabyal

    (Rochester Institute of Technology)

  • Hamid Beladi

    (University of Texas at San Antonio)

We first construct three measures of the expected damage from the unintentional introduction of alien species into a country called Home. We then focus on four market structures. First, perfect competition prevails in both Home and Foreign and Home is a small country. Second, the Home and the Foreign markets are both perfectly competitive but Home is now a large country. Third, the exporter in Foreign is a monopolist and there are no import competing firms in Home. Finally, the Foreign exporter and the import competing firm in Home engage in Cournot competition. In all four scenarios, we analyze the impact of small and optimal Home tariffs on prices, exports, imports, the damage from alien species, and social welfare, in Home. Inter alia, our analysis identifies conditions under which it makes sense to use trade policy (tariffs) to regulate invasive species and conditions under which it does not.

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File URL: http://www.business.utsa.edu/wps/eco/0043ECO-414-2008.pdf
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Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0043.

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Length: 40 pages
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Handle: RePEc:tsa:wpaper:0043
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  1. Lars J. Olson & Santanu Roy, 2002. "The Economics of Controlling a Stochastic Biological Invasion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1311-1316.
  2. 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.
  3. Batabyal, Amitrajeet A. & Nijkamp, Peter, 2005. "On Container Versus Time Based Inspection Policies in Invasive Species Management," 2005 Annual meeting, July 24-27, Providence, RI 19356, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Mark Eiswerth & Wayne Johnson, 2002. "Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(3), pages 319-342, November.
  5. Sharmila Vishwasrao & Srabana Gupta & Hassan Benchekroun, 2004. "Optimum tariffs and patent length in a model of North–South technology transfer," Working Papers 04022, Department of Economics, College of Business, Florida Atlantic University, revised May 2005.
  6. Paulo Nunes & Jeroen van den Bergh, 2004. "Can People Value Protection against Invasive Marine Species? Evidence from a Joint TC–CV Survey in the Netherlands," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(4), pages 517-532, August.
  7. Biswas, Amit K. & Marjit, Sugata, 2007. "Preferential trade and mis-invoicing: Some analytical implications," International Review of Economics & Finance, Elsevier, vol. 16(1), pages 130-138.
  8. 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.
  9. William T. Alpert & Stephen A. Woodbury, 2000. "Introduction," Book chapters authored by Upjohn Institute researchers, in: William T. Alpert & Stephen A. Woodbury (ed.), Employee Benefits and Labor Markets in Canada and the United States, chapter 1, pages 1-12 W.E. Upjohn Institute for Employment Research.
  10. Beladi, Hamid & Batabyal, Amitrajeet A., 2004. "International Trade And Biological Invasions: A Queuing Theoretic Analysis Of The Prevention Problem," 2004 Annual meeting, August 1-4, Denver, CO 19912, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. Batabyal, Amitrajeet A. & Nijkamp, Peter, 2007. "The stochastic arrival of alien species and the number of and the damage from biological invasions," Ecological Economics, Elsevier, vol. 62(2), pages 277-280, April.
  12. Edward B. Barbier & Jason F. Shogren, 2004. "Growth with Endogenous Risk of Biological Invasion," Economic Inquiry, Western Economic Association International, vol. 42(4), pages 587-601, October.
  13. Margolis, Michael & Shogren, Jason, 2004. "How Trade Politics Affect Invasive Species Control," Discussion Papers dp-04-07, Resources For the Future.
  14. 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.
  15. Zhao, Zishun & Wahl, Thomas I. & Marsh, Thomas L., 2006. "Invasive Species Management: Foot-and-Mouth Disease in the U.S. Beef Industry," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25490, International Association of Agricultural Economists.
  16. Parai, Amar K., 1999. "Profit tax and tariff under international oligopoly," International Review of Economics & Finance, Elsevier, vol. 8(3), pages 317-326, September.
  17. 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.
  18. Horstmann, Ignatius J. & Markusen, James R., 1986. "Up the average cost curve: Inefficient entry and the new protectionism," Journal of International Economics, Elsevier, vol. 20(3-4), pages 225-247, May.
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