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A Rational Risk Policy for Regulating Plant Diseases and Pests

Author

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  • Glauber, Joseph W.
  • Narrod, Clare A.

Abstract

This paper examines the Federal quarantine established by USDA in 1996 to prevent the spread of Karnal bunt, a minor disease of wheat. During the early stages of its regulatory strategy, USDA made extensive use of probabilistic risk assessments to determine the efficacy of various quarantine protocols. However, there was less careful consideration given to the costs and benefits of the actions. If risk had been incorporated directly into the cost/benefit analysis, different conclusions would likely have been drawn about the expected impact of the regulations. This paper develops a methodology for combining these two analyses to improve future regulatory decision-making.

Suggested Citation

  • Glauber, Joseph W. & Narrod, Clare A., 2001. "A Rational Risk Policy for Regulating Plant Diseases and Pests," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125644, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare01:125644
    DOI: 10.22004/ag.econ.125644
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    References listed on IDEAS

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    1. Brennan, John P. & Warham, Elizabeth J., 1990. "Economic Losses from Karnal Bunt of Wheat in Mexico," Economics Working Papers 232450, CIMMYT: International Maize and Wheat Improvement Center.
    2. Brennan, John P. & Warham, Elizabeth J. & Byerlee, Derek & Hernandez-Estrada, Julio, 1992. "Evaluating the economic impact of quality-reducing, seed-borne diseases: Lessons from Karnal bunt of wheat," Agricultural Economics, Blackwell, vol. 6(4), pages 345-352, April.
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    Cited by:

    1. Romano, Eduardo & Thornsbury, Suzanne, 2007. "Economic Evaluation of SPS Regulations: Where Can Progress be Made?," Staff Paper Series 36946, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Anderson, Jock R., 2003. "Risk in rural development: challenges for managers and policy makers," Agricultural Systems, Elsevier, vol. 75(2-3), pages 161-197.
    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. Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 178-194, April.
    5. Turvey, Calum G. & Mojduszka, Eliza M., 2005. "The Precautionary Principle and the law of unintended consequences," Food Policy, Elsevier, vol. 30(2), pages 145-161, April.

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