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Regional economic impacts of a plant disease incursion using a general equilibrium approach

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Author Info

  • Wittwer, Glyn
  • McKirdy, Simon
  • Wilson, Ryan

Abstract

The present study uses a dynamic multiregional computable general equilibrium (CGE) model to estimate the micro- andmacroeconomic effects of a hypothetical disease or pest outbreak. Our example is a Karnal bunt incursion in wheat in Western Australia. The extent of the incursion, the impact of the disease or pest on plant yields, the response of buyers, the costs of eradication and the time path of the scenario contribute to outcomes at the industry, regional, state and national levels. We decompose the contribution of these individual direct effects to the overall impact of the incursion. This might provide some guidance regarding areas for priority in attempting to eradicate or minimise the impacts of a disease or pest. The study also introduces a theory of dynamic regional labour adjustment in which economic events may lead to both real wage differentials and worker migration between regions.

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File URL: http://purl.umn.edu/118438
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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 49 (2005)
Issue (Month): 1 (March)
Pages:

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Handle: RePEc:ags:aareaj:118438

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Related research

Keywords: Crop Production/Industries;

References

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  1. Anderson, Kym & James, Sarah, 1998. "On the Need for More Economic Assessment of Quarantine/SPS Policies," CEPR Discussion Papers 1934, C.E.P.R. Discussion Papers.
  2. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
  3. Xueyan Zhao & Kym Anderson & Glyn Wittwer, 2003. "Who gains from Australian generic wine promotion and R&D?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 181-209, 06.
  4. Philip D. Adams & Mark Horridge & Glyn Wittwer, 2003. "MMRF-GREEN: A Dynamic Multi-Regional Applied General Equilibrium Model of the Australian Economy, Based on the MMR and MONASH Models," Centre of Policy Studies/IMPACT Centre Working Papers g-140, Victoria University, Centre of Policy Studies/IMPACT Centre.
  5. Mark Horridge & John Madden & Glyn Wittwer, 2003. "Using a highly disaggregated multi-regional single-country model to analyse the impacts of the 2002-03 drought on Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-141, Victoria University, Centre of Policy Studies/IMPACT Centre.
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Citations

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Cited by:
  1. Adamson, David & Cook, David, 2007. "Re-examining economic options for import risk assessments," Risk and Sustainable Management Group Working Papers 149869, University of Queensland, School of Economics.
  2. repec:ags:aare05:139327 is not listed on IDEAS
  3. David C. Cook & Rob W. Fraser & Jeffrey K. Waage & Matthew B. Thomas, 2009. "Prioritising Biosecurity Investment between Protecting Agricultural and Environmental Systems," Studies in Economics 0908, Department of Economics, University of Kent.
  4. Wittwer, Glyn & Vere, David T. & Jones, Randall E. & Griffith, Garry R., 2005. "Dynamic general equilibrium analysis of improved weed management in Australia's winter cropping systems," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), December.
  5. Cook, David C. & Lonsdale, Mark, 2006. "A strategic protection approach to biosecurity: Policy implications of an ‘immune system’ model for addressing the risks and consequences of invasive species," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174469, Australian Agricultural and Resource Economics Society.
  6. Glyn Wittwer & Simon McKirdy & Ryan Wilson, 2006. "Analysing a hypothetical Pierce's disease outbreak in South Australia using a dynamic CGE approach," Centre of Policy Studies/IMPACT Centre Working Papers g-162, Victoria University, Centre of Policy Studies/IMPACT Centre.
  7. George Verikios & Xiao-guang Zhang, 2013. "Reform of Australian Urban Transport: A CGE-Microsimulation Analysis of the Effects on Income Distribution," Centre of Policy Studies/IMPACT Centre Working Papers g-239, Victoria University, Centre of Policy Studies/IMPACT Centre.

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