Tariffs and the risk of invasive pest introductions in commodity imports: Theory and empirical evidence

Erik Lichtenberg and Lars Olson

Journal of Environmental Economics and Management, 2020, vol. 101, issue C

Abstract: We investigate using tariffs as corrective taxes to reduce risks from biological invasions due to expanded world trade. A theoretical analysis indicates that higher tariffs have ambiguous effects on invasive pest introductions. An econometric analysis using data from US Department of Agriculture surveillance screening indicates that tariff rates exert a negligible influence on expected invasive pest introductions from commodities currently facing positive tariffs. Removal of duty free status would decrease expected pest intercepts but undermine other goals of US trade policy and lower consumer welfare. Consumer welfare loss is on the order of $38 million per expected intercept avoided.

Keywords: Invasive pests; Tariffs; Phytosanitary restrictions; Non-tariff trade barriers; Trade policy (search for similar items in EconPapers)
JEL-codes: F13 F18 Q56 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:101:y:2020:i:c:s0095069620300449

DOI: 10.1016/j.jeem.2020.102321

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