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Animal Disease Pre-Event Preparedness versus Post-Event Response: When Is It Economic to Protect?

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  • Elbakidze, Levan
  • McCarl, Bruce A.

Abstract

We examine the economic tradeoff between the costs of pre-event preparedness and post-event response to the potential introduction of an infectious animal disease. In a simplified case study setting, we examine the conditions for optimality of an enhanced pre-event detection system considering various characteristics of a potential infectious cattle disease outbreak, costs of program implementation, severity of the disease outbreak, and relative effectiveness of postevent response actions. We show that the decision to invest in pre-event preparedness activities depends on such factors as probability of disease introduction, disease spread rate, relative costs, ancillary benefits, and effectiveness of mitigation strategies.

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  • Elbakidze, Levan & McCarl, Bruce A., 2006. "Animal Disease Pre-Event Preparedness versus Post-Event Response: When Is It Economic to Protect?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 327-336, August.
    • Handle: RePEc:cup:jagaec:v:38:y:2006:i:02:p:327-336_02
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    1. K. D. Cocks, 1968. "Discrete Stochastic Programming," Management Science, INFORMS, vol. 15(1), pages 72-79, September.
    2. Chen, Chi-Chung & McCarl, Bruce A., 2000. "The Value Of Enso Information To Agriculture: Consideration Of Event Strength And Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
    3. M.-J. J. Mangen & A. M. Burrell, 2003. "Who gains, who loses? Welfare effects of classical swine fever epidemics in the Netherlands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(2), pages 125-154, June.
    4. Spencer Henson & Mario Mazzocchi, 2002. "Impact of Bovine Spongiform Encephalopathy on Agribusiness in the United Kingdom: Results of an Event Study of Equity Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 370-386.
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    Cited by:

    1. Alexandre Cordier & Jean Gohin & Stephane Krebs & Arnaud Rault, 2013. "Dynamic Impacts of a Catastrophic Production Event: The Foot‐and‐Mouth Disease Case," Risk Analysis, John Wiley & Sons, vol. 33(3), pages 480-492, March.
    2. Arnaud Rault & Stéphane Krebs, 2011. "Catastrophic risk and risk management, what do we know about livestock epidemics? State of the art and prospects," Working Papers SMART 11-05, INRAE UMR SMART.
    3. Levan Elbakidze & Linda Highfield & Michael Ward & Bruce A. McCarl & Bo Norby, 2009. "Economics Analysis of Mitigation Strategies for FMD Introduction in Highly Concentrated Animal Feeding Regions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 931-950.
    4. He, Fei & Zhuang, Jun, 2016. "Balancing pre-disaster preparedness and post-disaster relief," European Journal of Operational Research, Elsevier, vol. 252(1), pages 246-256.
    5. Elbakidze, Levan, 2008. "Modeling of Avian Influenza Mitigation Policies Within the Backyard Segment of the Poultry Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-17.
    6. Rault, Arnaud & Krebs, Stephane, 2011. "Livestock epidemics and catastrophic risk management: State of the art and prospects on economic dynamics," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114793, European Association of Agricultural Economists.
    7. Boisvert, Richard N. & Kay, David & Turvey, Calum G., 2012. "Macroeconomic costs to large scale disruptions of food production: The case of foot- and-mouth disease in the United States," Economic Modelling, Elsevier, vol. 29(5), pages 1921-1930.
    8. 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), pages 1-21, July.
    9. Bahalou Horeh, Marziyeh & Elbakidze, Levan, 2020. "Economic Efficiency of Food Safety Modernization Act: Preventing Illnesses from Contaminated Water," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304637, Agricultural and Applied Economics Association.
    10. Elbakidze, Levan, 2007. "Economic Benefits Of Animal Tracing In The Cattle Production Sector," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9510, Western Agricultural Economics Association.
    11. Longworth, Natasha & Jongeneel, Roelof A. & Saatkamp, H.W. & Huirne, Ruud B.M., 2008. "Is prevention better than cure? An empirical investigation for the case of Avian Influenza," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44200, European Association of Agricultural Economists.

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    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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