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The Costs and Benefits of Pierce’s Disease Research in the California Winegrape Industry

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  • Alston, Julian M.
  • Fuller, Kate
  • Kaplan, Jonathan
  • Tumber, Kabir

Abstract

Pierce’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 Info

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 149994.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:149994

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Keywords: 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;

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  1. Brown, Cheryl & Lynch, Lori & Zilberman, David, 2000. "The Economics Of Controlling Insect-Transmitted Plant Diseases," Working Papers 28557, University of Maryland, Department of Agricultural and Resource Economics.
  2. Fuller, Kate B. & Alston, Julian M. & Sanchirico, James N., 2011. "Spatial Externalities and Vector-Borne Plant Diseases: Pierce’s Disease and the Blue-Green Sharpshooter in the Napa Valley," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103865, Agricultural and Applied Economics Association.
  3. Alston, Julian M. & Wyatt, T. J. & Pardey, Philip G. & Marra, Michele C. & Chan-Kang, Connie, 2000. "A meta-analysis of rates of return to agricultural R & D: ex pede Herculem?," Research reports 113, International Food Policy Research Institute (IFPRI).
  4. Atanu Saha & C. Richard Shumway & Arthur Havenner, 1997. "The Economics and Econometrics of Damage Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 773-785.
  5. Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2012. "The Economic Consequences of Pierce's Disease and Related Policy in the California Winegrape Industry," Working Papers 162520, Robert Mondavi Institute Center for Wine Economics.
  6. Babcock, Bruce A. & Lichtenberg, E. & Zilberman, David, 1992. "Impact of Damage Control and Quality of Output: Estimating Pest Control Effectiveness," Staff General Research Papers 10589, Iowa State University, Department of Economics.
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