Are Standards Always Protectionist?

We analyze the effects of a domestic standard that reduces an externality associated with the consumption of the good targeted by the standard, using a model in which foreign and domestic producers compete in the domestic good market. Producers can reduce expected damage associated with the externality by incurring a cost that varies by source of origin. Despite potential protectionism, the standard is useful in correcting the consumption externality in the domestic country. Protectionism occurs when the welfare-maximizing domestic standard is higher than the international standard maximizing welfare inclusive of foreign profits. The standard is actually anti-protectionist when foreign producers are much more efficient at addressing the externality than are domestic producers. Possible exclusion of domestic or foreign producers arises with large standards, which may alter the classification of a standard as protectionist or non-protectionist. The paper provides important implications for the estimation and use of tariff equivalents of nontariff barriers.

07021-008 Sand Creek Watershed Final Report

Sand Creek is the most significant recreational fishery in Delaware County because of its location to Manchester and Lake Delhi. It is a feeder stream for game fish to the main stem of the Maquoketa River which is limited by the dams at Manchester and Lake Delhi. Sand Creek encompasses 16,045 acres and is dominated by row crop agriculture. It is being impacted by sediment, nutrients and E coli bacteria. Sand Creek will be a good example for habitat impaired watershed. The purpose of this project is to decrease the amount of sediment and nutrients reaching Sand Creek and to increase the habitat in Sand Creek to make it a better spawning and growing area for the fish and the food chain for the fish. The objectives of this project are to reduce sediment delivery by 40%, to improve in-stream habitat on 40% of identified critical areas and implement an information/education program. The project will install 3,800 acres of new no-till planting, 6 water and sediment control basins, 4,000 feet of terraces, 20,000 feet of improved or new waterways, 3,200 feet of streambank/ habitat enhancement, 4,500 feet of livestock exclusion fencing and 6 acres of wetlands.