Estimating the Social Welfare Effects of New Zealand Apple Imports

David C. Cook, Shuang Liu, Robert Fraser, Abu-Baker Siddique and Dean R. Paini

No 91957, 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland from Agricultural Economics Society

Abstract: This paper provides a demonstration of how a comprehensive economic framework, which takes into account both the gains from trade and the costs of invasive species outbreaks, can inform decision-makers when making quarantine decisions. Using the theoretical framework developed in Cook and Fraser (2008) an empirical estimation is made of the economic welfare consequences for Australia of allowing quarantine-restricted trade in New Zealand apples to take place. The results suggest the returns to Australian society from importing New Zealand apples are likely to be negative. The price differential between the landed product with SPS measures in place and the autarkic price is insufficient to outweigh the increase in expected damage resulting from increased fire blight risk. As a consequence, this empirical analysis suggests the net benefits created by opening up this trade are marginal.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 4
Date: 2010-03-29
New Economics Papers: this item is included in nep-agr and nep-int
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Journal Article: Estimating the social welfare effects of New Zealand apple imports (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc10:91957

DOI: 10.22004/ag.econ.91957

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