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The economic impact of BSE: a regional perspective

Author

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  • Paul Caskie
  • John Davis
  • Joan Moss

Abstract

A regional input-output model, detailing agriculture and its ancillary sectors, is used to quantify the effects of a BSE-induced reduction in final demand for beef on the economy of Northern Ireland, a region with heavy dependence on beef exports. The long-run regional output, income and employment effects are estimated assuming no market stabilization measures and taking account of substitution effects in final demand. Predicted net losses in regional income are 0.5% of regional GDP with job losses of up to 0.6% of regional employment. About 77% of the income losses and 87% of the job losses are in the beef sector, primarily beef production. Compensating gains due to demand substitution effects occur mainly in meat processing sectors, other than beef, and are relatively small. Adverse intra-regional distributional effects are likely due to the concentration of beef production in the more disadvantaged areas. The importance of appropriate policy responses is highlighted.

Suggested Citation

  • Paul Caskie & John Davis & Joan Moss, 1999. "The economic impact of BSE: a regional perspective," Applied Economics, Taylor & Francis Journals, vol. 31(12), pages 1623-1630.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1623-1630
    DOI: 10.1080/000368499323148
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    Cited by:

    1. Alejandro Acosta & Carlos Barrantes & Rico Ihle, 2020. "Animal disease outbreaks and food market price dynamics: Evidence from regime‐dependent modelling and connected scatterplots," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 960-976, July.
    2. Corsi, Alessandro, 2012. "Willingness-to-pay in terms of price: an application to organic beef during and after the “mad cow” crisis," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 92(01), pages 25-46, October.
    3. Pendell, Dustin L. & Leatherman, John & Schroeder, Ted C. & Alward, Gregory S., 2007. "The Economic Impacts of a Foot-And-Mouth Disease Outbreak: A Regional Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(s1), pages 19-33, October.
    4. Christine Wieck & David Holland, 2010. "The economic effect of the Canadian BSE outbreak on the US economy," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 935-946.
    5. Maria Aguiar Fontes & Eric Giraud-Héraud & Alexandra Seabra Pinto, 2013. "Consumers' behaviour towards food safety: A litterature review," Working Papers hal-00912476, HAL.
    6. Acosta, Alejandro & Barrantes, Carlos & Ihle, Rico, 2020. "Animal disease outbreaks and food market price dynamics: Evidence from regime-dependent modelling and connected scatterplots," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    7. Bumsoo Lee & Jiyoung Park & Peter Gordon & James E. Moore II & Harry W. Richardson, 2012. "Estimating the State-by-State Economic Impacts of a Foot-and-Mouth Disease Attack," International Regional Science Review, , vol. 35(1), pages 26-47, January.
    8. Ramón G. Guajardo Quiroga & Patricia I. García López, 2001. "Análisis de la estructura del sector agua en Nuevo León y sus relaciones intersectoriales," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 16(2), pages 253-270.
    9. Kim, Man-Keun & Tejeda, Hernan, 2018. "Implicit Cost of the 2010 Foot-and-Mouth Disease in Korea," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(3), December.
    10. Rich, Karl M. & Winter-Nelson, Alex, 2004. "A Spatial Model Of Animal Disease Control In Livestock: Empirical Analysis Of Foot And Mouth Disease In The Southern Cone," 2004 Annual meeting, August 1-4, Denver, CO 20015, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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