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

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.


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 created 2017-04-01, last modified 2017-04-04

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