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An Economic Method for Empirically Assessing the ‘Appropriate Level of Protection

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  • Cook, David
  • Fraser, Rob

Abstract

Australia’s membership of the World Trade Organisation has generated a need for analytical techniques demonstrating that the behaviour of its internal markets and regulatory authorities for food and food-related products conform with the provisions of the Agreement on Sanitary and Phytosanitary Measures (SPS Agreement). However, since quarantine has long been considered a scientific issue, it is as yet unclear what role economic models have to play in this process. This article shows how consumer welfare effects can be integrated with the traditional producer welfare effects in quantitative analytical models using the examples of the mango and tomato industries in Western Australia, both of which enjoy quarantine protection from interstate growers.

Suggested Citation

  • Cook, David & Fraser, Rob, 2002. "An Economic Method for Empirically Assessing the ‘Appropriate Level of Protection," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 173978, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare02:173978
    DOI: 10.22004/ag.econ.173978
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    References listed on IDEAS

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    1. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), pages 1-20.
    2. J. Scott Shonkwiler & Robert D. Emerson, 1982. "Imports and the Supply of Winter Tomatoes: An Application of Rational Expectations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 634-641.
    3. Hinchy, Mike & Fisher, Brian, 1991. "A Cost-Benefit Analysis of Quarantine," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 293275, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
    4. Cook, David C. & Fraser, Rob W., 2001. "Exploring the Regional and Size-Related Implications of Interstate Quarantine Policies for WA Fruit and Vegetable Growers," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125560, Australian Agricultural and Resource Economics Society.
    5. Besley, Timothy, 1989. "The Demand for Health Care and Health Insurance," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 5(1), pages 21-33, Spring.
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