(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 |
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| 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: | https://publications.iowa.gov/id/eprint/3012 |