Combining Risk Assessment and Economics in Managing a Sanitary‐Phytosanitary Risk
研究如何在卫生与植物卫生措施中结合风险评估与经济学，以最大化总福利，发现先采取缓解措施再辅以较小关税的策略最优且限制性更小。
The Agreement on the Application of Sanitary and Phytosanitary (SPS) Measures provides guidelines for countries to protect domestic production from pests and diseases. The guidelines permit consideration of consumer welfare. We find an optimal set of SPS measures considering total welfare and mitigation strategies. Our model suggests that it is optimal and less restrictive to apply mitigation strategies first and then an additional smaller tariff if necessary. Relative cost of mitigation determines the amount of the mitigation strategies applied in the importing and exporting countries.