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Tariff Escalation and Invasive Species Risk AgEcon
Tu, Anh Thuy; Beghin, John C.; Gozlan, Estelle.
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.
Tipo: Working or Discussion Paper Palavras-chave: Agro-forestry products; Exotic pest; International trade; Invasive species; Tariff escalation; Trade flows; Resource /Energy Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/18377
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