Publication Date
10-2005
Series Number
05-WP 407
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 winwin situations.
Recommended Citation
Tu, Anh T.; Beghin, John C.; and Gozlan, Estelle, "Tariff Escalation and Invasive Species Risk" (2005). CARD Working Papers. 430.
https://lib.dr.iastate.edu/card_workingpapers/430
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, International Economics Commons, Natural Resources Management and Policy Commons
