Exotic Pests and Trade: When Is Pest-Free Status Certification Worthwhile Report as inadecuate

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Pest-free status certification is desirable if the demand-side impacts (increased export revenue) and supply-side impacts (lower pest damage and decreased ongoing control costs) exceed the compliance monitoring and eradication costs. Thus, eradication may be optimal without certification. Certification is more likely for regions facing costly treatment requirements (bans) or possessing geographic traits that lower monitoring costs and infestation probabilities than for those exporting higher-valued products. Certification benefits producers but hurts consumers. Thus, political feasibility may be greater if domestic consumption is a small share of the market and if the additional tax burden of certification programs is light.

Keywords: exotic pests ; invasive species ; pest-free area ; eradication ; sanitary/phytosanitary regulations

Subject(s): International Relations/Trade

Issue Date: 2006-04

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/10182 Published in: Agricultural and Resource Economics Review, Volume 35, Number 1 Page range: 52-62

Total Pages: 11

Record appears in: Northeastern Agricultural and Resource Economics Association (NAREA) > Agricultural and Resource Economics Review

Author: Lichtenberg, Erik ; Lynch, Lori

Source: http://ageconsearch.umn.edu/record/10182?ln=en

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