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Predicting the total economic impacts of invasive species: The case of B. rubostriata(red streaked leafhopper)

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  • Liu, Lirong
  • Piper, Brian

Abstract

This paper predicts the total economic impacts of an impending invasion of Balclutha rubostriata (henceforth B. rubostriata) in the sugarcane-producing regions of Louisiana. B. rubostriata is a non-native species that feeds on sugarcane and can be a carrier of sugarcane white leaf phytoplasma, a disease capable of causing up to 100% crop loss. The total economic impacts considered in the prediction include direct, indirect and induced economic impacts. These estimates are essential for policy-makers to formulate appropriate responses. Results show that the cumulative total impacts could be as high as $5.4 million from B. rubostriata only or $71.6 million from B. rubostriata and the phytoplasma after 5years. State and local governments could lose a cumulative total of $438,450 in tax while federal revenues would be reduced by $4 million with B. rubostriata and phytoplasma after 5years. Cumulative employment effects range from 184 lost jobs with just B. rubostriata to 2460 lost jobs with B. rubostriata and phytoplasma by year 5, about one-tenth percentage point increase in Louisiana's unemployment rate at current employment levels.

Suggested Citation

  • Liu, Lirong & Piper, Brian, 2016. "Predicting the total economic impacts of invasive species: The case of B. rubostriata(red streaked leafhopper)," Ecological Economics, Elsevier, vol. 128(C), pages 139-146.
  • Handle: RePEc:eee:ecolec:v:128:y:2016:i:c:p:139-146
    DOI: 10.1016/j.ecolecon.2016.04.014
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    References listed on IDEAS

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    1. Richard D. Horan & Charles Perrings & Frank Lupi & Erwin H. Bulte, 2002. "Biological Pollution Prevention Strategies under Ignorance:The Case of Invasive Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1303-1310.
    2. Pimentel, David & Zuniga, Rodolfo & Morrison, Doug, 2005. "Update on the environmental and economic costs associated with alien-invasive species in the United States," Ecological Economics, Elsevier, vol. 52(3), pages 273-288, February.
    3. Lovell, Sabrina J. & Stone, Susan F. & Fernandez, Linda, 2006. "The Economic Impacts of Aquatic Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-14, April.
    4. repec:rre:publsh:v:34:y:2004:i:1:p:57-71 is not listed on IDEAS
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    Cited by:

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    4. Israel Ropo Orimoloye & Leocadia Zhou & Ahmed M. Kalumba, 2021. "Drought Disaster Risk Adaptation through Ecosystem Services-Based Solutions: Way Forward for South Africa," Sustainability, MDPI, vol. 13(8), pages 1-15, April.

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