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Dynamic sanitary and phytosanitary trade policy

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  • Olson, Lars J.
  • Roy, Santanu

Abstract

This paper characterizes the optimal use of sanitary and phytosanitary standards to prevent the introduction of harmful pests and diseases through international trade. Because established pest and disease infestations grow and spread over time their introduction has intertemporal consequences. In a dynamic economic model, an efficient trade policy balances the costs of SPS measures against the discounted stream of the costs of control and social damages that are avoided by using SPS measures, where future growth of any established infestation is accounted for. We examine when phytosanitary trade policy makes good economic sense, when it is efficient to provide full protection against pests and diseases, and when restrictive, but not fully protective trade policy is efficient.

Suggested Citation

  • Olson, Lars J. & Roy, Santanu, 2010. "Dynamic sanitary and phytosanitary trade policy," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 21-30, July.
  • Handle: RePEc:eee:jeeman:v:60:y:2010:i:1:p:21-30
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    Cited by:

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    2. Dalmazzone, Silvana & Giaccaria, Sergio, 2014. "Economic drivers of biological invasions: A worldwide, bio-geographic analysis," Ecological Economics, Elsevier, vol. 105(C), pages 154-165.
    3. Kamal Saggi & Mark Wu, 2018. "Trade and Agricultural Disease: Import Restrictions in the Wake of the India–Agricultural Products Dispute," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 21, pages 483-506, World Scientific Publishing Co. Pte. Ltd..
    4. Liu, Yanxu & Sims, Charles, 2016. "Spatial-dynamic externalities and coordination in invasive species control," Resource and Energy Economics, Elsevier, vol. 44(C), pages 23-38.

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    More about this item

    Keywords

    Trade policy Invasive species Pests and diseases Intertemporal allocation;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • F18 - International Economics - - Trade - - - Trade and Environment
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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