Title

Optimal Regulation of Invasive Species Long-Range Spread: A General Equilibrium Approach

Document Type

Article

Publication Date

10-2015

Abstract

Economic activity is implicated in the long-range spread of invasive species, resulting in ecological and economic damages. Current policies that are used to prevent such spread include specific and ad valorem taxes. However, these taxes are often created under ecological and economic uncertainty. To address this concern, this paper develops a general equilibrium model capable of evaluating the efficiency of specific and ad valorem taxes under uncertainty. Results show that specific taxes are more efficient at achieving a social optimum under imperfect information and that a combination of taxes is needed for multiple forms of long-range transmission.

DOI

10.1515/bejeap-2014-0087

Publisher

De Gruyter

Publication Information

The B. E. Journal of Economic Analysis & Policy

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