Title

Tariff escalation and invasive species damages

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2008

Journal or Book Title

Ecological Economics

Volume

67

Issue

4

First Page or Article ID Number

619

Last Page

629

DOI

10.1016/j.ecolecon.2008.01.013

Abstract

We investigate the interface between trade and damages from invasive species (IS), focusing on escalation in tariffs between raw-input and processed-good markets, and its implication for IS-based damages. The current tariff escalation in processed agro-forestry products motivates our analysis. Tariff escalation exacerbates the likelihood of IS introduction by biasing trade flows towards increased trade of primary commodity flows and against processed-product trade. We show that a reduction of tariff escalation, by lowering the tariff on processed goods increases allocative efficiency and reduces IS-based damages, 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.

Comments

This is a working paper of an article from Ecological Economics 67 (2008): 619, doi:10.1016/j.ecolecon.2008.01.013