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Spatial-Dynamic Externalities and Coordination in Invasive Species Control

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  • Liu, Yanxu
  • Sims, Charles

Abstract

This study investigates a spatial externality common in invasive species control decisions made by multiple, spatially-connected decision makers (i.e., individual landowners, state and federal agencies, etc.). The externality arises due to the different spatial considerations of decision-makers which drives a wedge between individual and social damages, and results in a suboptimal level of individual control. The number of decision makers, the size of individual parcels, and the spatial configuration of small and large parcels influence the severity of the externality and consequently the insufficiency of privately supplied invasive species control. To internalize the externality, this paper provides a corrective mechanism in which individuals compensate invaded individuals for control actions that preserve uninvaded areas. These results shed light on the coordination problem in transboundary invasive species issues.

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File URL: http://purl.umn.edu/151293
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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 151293.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:151293

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Keywords: Agricultural and Food Policy; Environmental Economics and Policy;

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  1. Kim, C.S. & Lubowski, Ruben N. & Lewandrowski, Jan & Eiswerth, Mark E., 2006. "Prevention or Control: Optimal Government Policies for Invasive Species Management," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  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. Olson, Lars J. & Roy, Santanu, 2010. "Dynamic sanitary and phytosanitary trade policy," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 21-30, July.
  4. Brock, William & Xepapadeas, Anastasios, 2010. "Pattern formation, spatial externalities and regulation in coupled economic-ecological systems," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 149-164, March.
  5. McIntosh, Christopher R. & Shogren, Jason F. & Finnoff, David C., 2010. "Invasive species and delaying the inevitable: Valuation evidence from a national survey," Ecological Economics, Elsevier, vol. 69(3), pages 632-640, January.
  6. Richard D. Horan & Christopher A. Wolf, 2005. "The Economics of Managing Infectious Wildlife Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 537-551.
  7. Cheryl Brown & Lori Lynch & David Zilberman, 2002. "The Economics of Controlling Insect-Transmitted Plant Diseases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 279-291.
  8. Kimberly Burnett & Sean D’Evelyn & Brooks Kaiser & Porntawee Nantamanasikarn & James Roumasset, 2007. "Beyond the Lamppost: Optimal Prevention and Control of the Brown Treesnake in Hawaii," Working Papers 200714, University of Hawaii at Manoa, Department of Economics.
  9. Sims, Charles & Finnoff, David, 2013. "When is a “wait and see” approach to invasive species justified?," Resource and Energy Economics, Elsevier, vol. 35(3), pages 235-255.
  10. Epanchin-Niell, Rebecca S. & Wilen, James E., 2012. "Optimal spatial control of biological invasions," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 260-270.
  11. Homans, Frances & Horie, Tetsuya, 2011. "Optimal detection strategies for an established invasive pest," Ecological Economics, Elsevier, vol. 70(6), pages 1129-1138, April.
  12. Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  13. James E. Wilen, 2007. "Economics of Spatial-Dynamic Processes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1134-1144.
  14. Karl M. Rich & Alex Winter-Nelson & Nicholas Brozović, 2005. "Modeling Regional Externalities with Heterogeneous Incentives and Fixed Boundaries: Applications to Foot and Mouth Disease Control in South America ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 456-464.
  15. Bhat, Mahadev G. & Huffaker, Ray G., 2007. "Management of a transboundary wildlife population: A self-enforcing cooperative agreement with renegotiation and variable transfer payments," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 54-67, January.
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