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Farm Economics of Bird Flu

Author

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  • Robert H. Beach
  • Christine Poulos
  • Subhrendu K. Pattanayak

Abstract

Outbreaks of infectious animal diseases represent a major threat to agriculture and can impose significant social and economic costs. The potential for devastating epidemics, such as the recent outbreaks of highly pathogenic avian influenza (HPAI) in Asia, Europe, and Africa, has prompted major global investments in animal disease prevention and control, both public and private. However, there has been little research into the effects of alternative public policies on farm‐level actions to prevent and control HPAI and the implications for disease impacts. Animal disease management involves both ex ante investments to reduce the probability of infection and ex post actions to contain the spread of disease once introduced. The public sector can play an important part in disease mitigation through provision of public disease prevention and control. Another vital role for government in mitigating the potential impacts of HPAI is in the development of well‐designed policies to induce socially optimal ex ante private investment while providing incentives for truthful disclosure of disease status. This study employs an economic epidemiology framework to examine the effects of farmer behavior on disease introduction and transmission and to analyze the effects of public policy decisions under alternative scenarios. Les éclosions de maladies animales infectieuses représentent une menace importante pour l’agriculture et peuvent entraîner des coûts socio‐économiques considérables. L’éventualité d’épidémies dévastatrices, telles que les récentes flambées d’influenza aviaire hautement pathogène (IAHP) en Asie, en Europe et en Afrique, a suscité d’importants investissements publics et privés à l’échelle mondiale pour prévenir et lutter contre ces maladies. Cependant, peu de recherches se sont penchées sur les effets des politiques publiques de rechange sur les mesures prises à la ferme pour prévenir et lutter contre l’IAHP et les répercussions des maladies. La gestion des maladies animales nécessite des investissements ex ante pour diminuer la probabilité d’infection et des mesures ex poste pour contenir la propagation d’une maladie une fois introduite. Le secteur public peut jouer un rôle important dans l’atténuation d’une maladie en instaurant des programmes publics de prévention et de lutte. Pour atténuer les conséquences potentielles de l’IAHP, le gouvernement peut élaborer des politiques efficaces pour inciter des investissements privés ex ante socialement optimaux tout en offrant des stimulants pour encourager la divulgation véridique de la situation zoosanitaire. Dans la présente étude, nous avons utilisé un cadre épidémiologique et économique pour examiner les conséquences du comportement de l’exploitant agricole sur l’introduction et la transmission des maladies et pour analyser les conséquences des décisions de politique publique selon divers scénarios.

Suggested Citation

  • Robert H. Beach & Christine Poulos & Subhrendu K. Pattanayak, 2007. "Farm Economics of Bird Flu," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(4), pages 471-483, December.
  • Handle: RePEc:bla:canjag:v:55:y:2007:i:4:p:471-483
    DOI: 10.1111/j.1744-7976.2007.00103.x
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    References listed on IDEAS

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    1. David A. Hennessy, 2006. "Economies of Feedlot Scale, Biosecurity, Investment, and Endemic Livestock Disease," Center for Agricultural and Rural Development (CARD) Publications 06-wp433, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Gramig, Benjamin M. & Horan, Richard D. & Wolf, Christopher A., 2005. "A Model of Incentive Compatibility under Moral Hazard in Livestock Disease Outbreak Response," 2005 Annual meeting, July 24-27, Providence, RI 19200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. David A. Hennessy, 2005. "Biosecurity and Infectious Animal Disease," Center for Agricultural and Rural Development (CARD) Publications 05-wp413, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Warwick McKibbin & Alexandra Sidorenko, 2006. "Global Macroeconomic Consequences of Pandemic Influenza," CAMA Working Papers 2006-26, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    5. McCarthy, Nancy & McDermott, John & Coleman, Paul, 2003. "Animal health and the role of communities: an example of trypanasomosis control options in Uganda," EPTD discussion papers 103, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Liang, Jing, 2010. "Three essays on food safety and foodborne illness," ISU General Staff Papers 201001010800002782, Iowa State University, Department of Economics.

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