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Biosecurity Externalities and Indemnities for Infectious Animal Diseases

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Abstract

In animal agriculture, biosecurity decisions are dispersed across many herd owners. Choices impacting disease spread will be determined by impacts on private economic values, and so are economic externalities. However, externalities are not all alike. By way of three very distinct examples, we demonstrate how they differ and what these differences mean for approaches to policies seeking to manage them. The three examples are an endemic disease pool that can be managed by limiting sources and flows, an exotic disease that can be managed by way of communicated coordination, and an infrastructural support externality that can be managed by disease outbreak insurance. We pay particular attention to how concentration in animal herd ownership affects incentives for disease control. JEL Classifications: D2, H4, Q1

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  • David A. Hennessy, 2013. "Biosecurity Externalities and Indemnities for Infectious Animal Diseases," Center for Agricultural and Rural Development (CARD) Publications 13-wp539, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:13-wp539
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    References listed on IDEAS

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    1. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    2. David A. Hennessy, 2007. "Behavioral Incentives, Equilibrium Endemic Disease, and Health Management Policy for Farmed Animals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 698-711.
    3. Marie‐Hélène Felt & Jean‐Philippe Gervais & Bruno Larue, 2011. "Market power and import bans: the case of Japanese pork imports," Agribusiness, John Wiley & Sons, Ltd., vol. 27(1), pages 47-61, Winter.
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    More about this item

    Keywords

    business continuity; complements; infrastructure; substitutes.;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • H4 - Public Economics - - Publicly Provided Goods
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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