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Economic Impacts of Pink Hibiscus Mealybug in Florida and the United States

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  • Ranjan, Ram
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    Abstract

    This paper estimates the direct and indirect impacts of the Pink Hibiscus Mealybug infestation on the economies of Florida and the rest of the United States. The approach involves a Markov chain analysis wherein both short run and long run expected damages from infestation are calculated. Use is made of the CLIMEX model that predicts the potential pest-establishment regions in the US. While predictions based upon the CLIMEX model extend the scope of damages beyond Florida, the damages are dependent upon the rate of arrival and detection of species in those regions. Damages are significantly higher when a longer time horizon is considered. When nursery owners bear the full cost of quarantines in the form of loss of sales and treatment costs of infected plants, the cost-effectiveness of quarantines as a regulatory tool is diminished.

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    File URL: http://purl.umn.edu/15655
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    Bibliographic Info

    Paper provided by University of Florida, International Agricultural Trade and Policy Center in its series Working Papers with number 15655.

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    Date of creation: 2004
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    Handle: RePEc:ags:uflowp:15655

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    Web page: http://www.iatpc.ifas.ufl.edu/
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    Related research

    Keywords: Crop Production/Industries;

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