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Exotic Pests and Trade: When Is Pest-Free Status Certification Worthwhile?

Published online by Cambridge University Press:  15 September 2016

Erik Lichtenberg  and
Lori Lynch
Erik Lichtenberg
Affiliation:
Department of Agricultural and Resource Economics at the University of Maryland in College Park, Maryland
Lori Lynch
Affiliation:
Department of Agricultural and Resource Economics at the University of Maryland in College Park, Maryland
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Abstract

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 pestsinvasive speciespest-free areaeradicationsanitary/phytosanitary regulations
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 35 , Issue 1 , April 2006 , pp. 52 - 62
Copyright
Copyright © 2006 Northeastern Agricultural and Resource Economics Association 

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