In this paper, the authors discuss theways in which national governments, firms, and individualsrespond to policy related to food safety, environmentalprotection, and trade. These responses must be considered inthe development of policy to ensure the best possibleoutcomes. It accounts for uncertainty about policy impactsand scientific knowledge and incorporates stochasticenvironmental factors. The authors argue use of such a modelin the development of health and environmental policy canovercome capture by domestic forces opposed to tradeliberalization. The effectiveness of policy, of course, isdependent upon firm and consumer response to policy. Sectionone describes the impacts of international transfer ofspecies and genetic material, paying particular attention tothe introduction of alien invasive species. Section twodiscusses issues surrounding trade in environmentalamenities. Food safety and environmental regulations arereviewed in section three, along with mechanisms by whichsuch policy can serve as a proxy for protectionists. Sectionfour develops a risk assessment model that can be used inpolicy design. Section five considers the role ofinstitutional, firm and individual behavior in thedevelopment and effectiveness of policy. Section sixsummarizes our analysis in offering an agenda for trade talks.
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