Maritime Trade, Biological Invasions, and the Properties of Alternate Inspection Regimes
Stochastic Environmental Research and Risk Assessment, Vol. 19, No. 3, pp. 184-190, 2005
Posted: 16 Aug 2005
We study the problem of precluding biological invasions caused by ships transporting internationally traded goods between countries and continents. In particular, we ask the following question: Should a port manager have a small number of inspectors inspect arriving ships less stringently or should this manager have a large number of inspectors inspect the same ships more stringently? We use a simple queuing-theoretic framework and show that if decreasing the economic cost of regulation is very important then it makes more sense for the port manager to choose the less stringent inspection regime. In contrast, if reducing the damage from biological invasions is more salient then the port manager ought to pick the more stringent inspection regime.
Keywords: Biological invasion, inspection, Maritime trade, queuing theory, uncertainty
JEL Classification: D81, Q20, Q28
Suggested Citation: Suggested Citation