The Costs and Benefits of Pierce’s Disease Research in the California Winegrape Industry
AbstractPierce’s Disease (PD) of grapevines costs more than $100 million per year, even with public control programs in place that cost $50 million per year (Tumber et al., 2012). If the PD Control Program ended, and the GWSS was distributed freely throughout California, the annual cost to the winegrape industry would increase by more than $185 million (Alston et al., 2012). Using a simulation model of the market for California winegrapes, we estimate the benefits from research, development and adoption of PD-resistant vines as ranging from $4 million to $125 million annually over a 50 year horizon, depending on the length of the R&D lag and the rate of adoption. In addition to these quantitative results the paper offers insight into the broader question of economic evaluation of damage-mitigation technology for perennial crops.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 149994.
Date of creation: 2013
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Pierce’s Disease research; exotic pest; simulation model; perennial crop model; California wine and winegrapes; Agricultural and Food Policy; Crop Production/Industries; Production Economics; Q11; Q16; Q18; C61;
Other versions of this item:
- Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2013. "The Costs and Benefits of Pierce's Disease Research in the California Winegrape Industry," Working Papers 162525, Robert Mondavi Institute Center for Wine Economics.
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
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