Tariff escalation and invasive species damages

Anh Thuy Tu, John Beghin () and Estelle Gozlan

ISU General Staff Papers from Iowa State University, Department of Economics

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.

Date: 2008-01-01
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Related works:
Journal Article: Tariff escalation and invasive species damages (2008)
Working Paper: Tariff escalation and invasive species damages (2008)
Working Paper: Tariff Escalation and Invasive Species Damages (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:200801010800001426

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