Tariff Escalation and Invasive Species Risk

Anh Thuy Tu, John C. Beghin and Estelle Gozlan

No 18377, Hebrew University of Jerusalem Archive from Hebrew University of Jerusalem

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 win-win situations.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 36
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ags:hebarc:18377

DOI: 10.22004/ag.econ.18377

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