provided by Research Papers in Economics
Tariff Escalation and Invasive Species Risk
Anh Tu and John Beghin*
Iowa State University
Draft of 05-15-05
Selected Paper prepared for presentation at the 2005 American Agricultural Economics
Association Annual Meeting, Providence, Rhode Island, July 24-27, 2005
Abstract
We investigate the interface between trade and invasive species (IS) risk, focusing on the
existing tariff escalation in agricultural and food-processing markets and its implication IS risk.
Tariff escalation in processed agro-forestry products exacerbates the risk of IS by biasing trade
flows towards increased trade of primary commodity flows and against processed-product trade.
We show that reductions of tariff escalation by reduction of the tariff on processed goods
increase allocative efficiency and reduce 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.
*We thank GianCarlo Moschini, Estelle Gozlan, Harvey Lapan, and Denis Mcgee for comments and discussions.
Estelle Gozlan and Denis Mcgee provided us with background information regarding pests associated with
agricultural and wood products and tariff escalation in wood products.
More intriguing information
1. The name is absent2. The name is absent
3. Testing Hypotheses in an I(2) Model with Applications to the Persistent Long Swings in the Dmk/$ Rate
4. The name is absent
5. Review of “From Political Economy to Economics: Method, the Social and Historical Evolution of Economic Theory”
6. The name is absent
7. Wage mobility, Job mobility and Spatial mobility in the Portuguese economy
8. Modelling the health related benefits of environmental policies - a CGE analysis for the eu countries with gem-e3
9. Political Rents, Promotion Incentives, and Support for a Non-Democratic Regime
10. Dynamic Explanations of Industry Structure and Performance