Tariff Escalation and Invasive Species Risk, October 2005

(2005) Tariff Escalation and Invasive Species Risk, October 2005. Iowa State University

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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 winwin situations.

Item Type: Departmental Report
Keywords: agro-forestry products, exotic pest, international trade, invasive species, tariff escalation, trade flows
Subjects: Business and industry > Economic forecasts
Agriculture and food production > Farmlands
Natural resources and environment > Environmental assessments
ID Code: 3012
Deposited By: Margaret Barr
Deposited On: 02 Nov 2005
Last Modified: 02 Nov 2005
URI: http://publications.iowa.gov/id/eprint/3012

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