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Abstract

Methyl bromide has been named as an ozone depleting chemical and there is a risk that it may be banned in the near future. This paper describes an economic evaluation of an ACIAR-funded project which is proposing to find technologies to replace methyl bromide in quarantine fumigation of timber . The paper uses the concepts of consumer and producer surplus to estimate the net welfare changes associated with the replacement of methyl bromide in the fumigation of timber for export. The evaluation includes the following impacts of a technology to replace methyl bromide: • the human health impacts due to a reduction in the incidence of UVB radiation induced medical conditions; ~ the impact on the cost of quarantine treatment of timber in the countries collaborating in the research project; and • the impacts on the world price of processed timber products and the trade dependent price spillovers to other countries and regions in the world. The paper estimates the global welfare human health benefits of, and the internal rate of return on research to find a replacement of methyl bromide with a non-ozone depleting technology.

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