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Biosecurity in agriculture: an economic analysis of coexistence of professional and hobby production

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  • Graziano Ceddia, Michele
  • Heikkilä, Jaakko
  • Peltola, Jukka

Abstract

One component of biosecurity is protection against invasive alien species, which are one of the most important threats worldwide to native biodiversity and economic profitability in various sectors, including agriculture. However, agricultural producers are not homogeneous. They may have different objectives and priorities, use different technologies, and occupy heterogeneous parcels of land. If the producers differ in terms of their attitude towards invasive pests and the damages they cause, there are probably external effects in the form of pest spread impacts and subsequent damages caused. We study such impacts in the case of two producer types: profit-seeking professional producers and utility-seeking hobby producers. We show that the hobby producer, having first set a breeding ground for the pest, under-invests in pest control. We also discuss potential policy instruments to correct this market failure and highlight the importance of considering different stakeholders and their heterogeneous incentives when designing policies to control invasive alien species.

Suggested Citation

  • Graziano Ceddia, Michele & Heikkilä, Jaakko & Peltola, Jukka, . "Biosecurity in agriculture: an economic analysis of coexistence of professional and hobby production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aareaj:161902
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    References listed on IDEAS

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    1. 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.
    2. Finnoff, David & Shogren, Jason F. & Leung, Brian & Lodge, David, 2005. "The importance of bioeconomic feedback in invasive species management," Ecological Economics, Elsevier, vol. 52(3), pages 367-381, February.
    3. Mishra, Ashok K. & El-Osta, Hisham S. & Morehart, Mitchell J. & Johnson, James D. & Hopkins, Jeffrey W., 2002. "Income, Wealth, And The Economic Well-Being Of Farm Households," Agricultural Economics Reports 33967, United States Department of Agriculture, Economic Research Service.
    4. Blank, Steven C., 2005. "The Business of an Agricultural “Way of Life”," Choices, Agricultural and Applied Economics Association, vol. 20(2).
    5. Paul M. Jakus, 1994. "Averting Behavior in the Presence of Public Spillovers: Household Control of Nuisance Pests," Land Economics, University of Wisconsin Press, vol. 70(3), pages 273-285.
    6. Mark Eiswerth & Wayne Johnson, 2002. "Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 319-342, November.
    7. Michael E. Gray & Kevin L. Steffey, 2004. "A Composed-Error Model for Estimating Pest-Damage Functions and the Impact of the Western Corn Rootworm Soybean Variant in Illinois," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 332-344.
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    Cited by:

    1. Ceddia, M.G. & Heikkil, J. & Peltola, J., 2009. "Managing invasive alien species with professional and hobby farmers: Insights from ecological-economic modelling," Ecological Economics, Elsevier, vol. 68(5), pages 1366-1374, March.
    2. Kobayashi, Mimako & Melkonyan, Tigran A., 2011. "Strategic Incentives in Biosecurity Actions: Theoretical and Empirical Analyses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), August.
    3. Harvey, Sallyann & Fisher, Bill & Larson, Kristoffer & Malcolm, Bill, 2010. "A benefit cost analysis on management strategies for Queensland Fruit Fly: methods and observations," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59740, Australian Agricultural and Resource Economics Society.

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