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Prevention or Control: Optimal Government Policies for Invasive Species Management

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  • Kim, C.S.
  • Lubowski, Ruben N.
  • Lewandrowski, Jan
  • Eiswerth, Mark E.
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    Abstract

    We present a conceptual, but empirically applicable, model for determining the optimal allocation of resources between exclusion and control activities for managing an invasive species with an uncertain discovery time. This model is used to investigate how to allocate limited resources between activities before and after the first discovery of an invasive species and the effects of the characteristics of an invasive species on limited resource allocation. The optimality conditions show that it is economically efficient to spend a larger share of outlays for exclusion activities before, rather than after, a species is first discovered, up to a threshold point. We also find that, after discovery, more exclusionary measures and fewer control measures are optimal, when the pest population is less than a threshold. As the pest population increases beyond this threshold, the exclusionary measures are no longer optimal. Finally, a comparative dynamic analysis indicates that the efficient level of total expenditures on preventive and control measures decreases with the level of the invasive species stock and increases with the intrinsic population growth rate, the rate of additional discoveries avoided, and the maximum possible pest population.

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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 35 (2006)
    Issue (Month): 1 (April)
    Pages:

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    Handle: RePEc:ags:arerjl:10176

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    Web page: http://www.narea.org/
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    Related research

    Keywords: invasive species; exclusion; control; eradication; public expenditures; Environmental Economics and Policy; Resource /Energy Economics and Policy;

    References

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    1. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June.
    2. Lars J. Olson & Santanu Roy, 2002. "The Economics of Controlling a Stochastic Biological Invasion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1311-1316.
    3. 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.
    4. Mark E. Eiswerth & G. Cornelis van Kooten, 2002. "Uncertainty, Economics, and the Spread of an Invasive Plant Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1317-1322.
    5. Kamien, Morton I & Schwartz, Nancy L, 1971. "Limit Pricing and Uncertain Entry," Econometrica, Econometric Society, vol. 39(3), pages 441-54, May.
    6. Olivier J. Blanchard, 1984. "Debt, Deficits and Finite Horizons," NBER Working Papers 1389, National Bureau of Economic Research, Inc.
    7. Mark Eiswerth & Wayne Johnson, 2002. "Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(3), pages 319-342, November.
    8. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 964-975.
    9. Chad Settle & Jason E Shogren, 2002. "Modeling Native-Exotic Species within Yellowstone Lake," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1323-1328.
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    Citations

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    Cited by:
    1. Lewandrowski, Jan & Kim, C.S. & Aillery, Marcel, 2014. "Carbon sequestration through afforestation under uncertainty," Forest Policy and Economics, Elsevier, vol. 38(C), pages 90-96.
    2. Carrasco, L.R. & Mumford, J.D. & MacLeod, A. & Knight, J.D. & Baker, R.H.A., 2010. "Comprehensive bioeconomic modelling of multiple harmful non-indigenous species," Ecological Economics, Elsevier, vol. 69(6), pages 1303-1312, April.
    3. McKee, Gregory J., 2011. "Coordinated pest management decisions in the presence of management externalities: The case of greenhouse whitefly in California-grown strawberries," Agricultural Systems, Elsevier, vol. 104(1), pages 94-103, January.
    4. Carrasco, Luis Roman & Baker, R & MacLeod, A & Knight, J. D. & Mumford, J. D., 2009. "Optimal and robust control of invasive alien species spreading in homogeneous landscapes," MPRA Paper 57757, University Library of Munich, Germany.
    5. Liu, Yanxu & Sims, Charles, 2013. "Spatial-Dynamic Externalities and Coordination in Invasive Species Control," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151293, Agricultural and Applied Economics Association.
    6. Kim, C.S. & Schaible, Glenn D. & Garrett, Lynn & Lubowski, Ruben N. & Lee, Donna J., 2008. "Economic Impacts of the U.S. Soybean Aphid Infestation: A Multi-Regional Competitive Dynamic Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
    7. Carrasco, Luis Roman & MacLeod, Alan & Knight, John D. & Baker, Richard & Mumford, John D., 2009. "Optimal Control of Spreading Biological Invasions: For How Long Should We Apply the Brake?," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50940, Agricultural Economics Society.
    8. Kim, C.S. & Schaible, Glenn D. & Garrett, Lynn & Lubowski, Ruben N. & Lee, Donna J., 2006. "Biological Invasions: The Case of Soybean Aphid Infestation," 2006 Annual meeting, July 23-26, Long Beach, CA 21163, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Nghiem, Le T.P. & Soliman, Tarek & Yeo, Darren C. J. & Tan, Hugh T. W. & Evans, Theodore A. & Mumford, John D. & Keller, Reuben P. & Baker, Richard H. A. & Corlett, Richard T. & Carrasco, Luis R., 2013. "Economic and Environmental Impacts of Harmful Non-Indigenous Species in Southeast Asia," MPRA Paper 57760, University Library of Munich, Germany.

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