IDEAS home Printed from https://ideas.repec.org/p/ags/aaea12/125226.html
   My bibliography  Save this paper

Application of Comparative Dynamics in Stochastic Invasive Species Management in Agricultural Production

Author

Listed:
  • Lu, Liang
  • Elbakidze, Levan

Abstract

In this study, we formulate a stochastic dynamic framework for pest control over the growing season taking into account forecasts of weather conditions and pest infestation expectations. Using stochastic envelope theorem and stochastic comparative dynamics, we analytically show how the stochastic correlation between the prediction errors should affect optimal pesticide usage path. As a case study, we apply the analytical results of the paper for pesticide use in the Palouse region of Washington where pea aphid is the primary threat for lentil production. By stochastic dynamic programming, our simulation shows the optimal dimethoate usage path, which illustrates our findings in the analytical part.

Suggested Citation

  • Lu, Liang & Elbakidze, Levan, 2012. "Application of Comparative Dynamics in Stochastic Invasive Species Management in Agricultural Production," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125226, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:125226
    DOI: 10.22004/ag.econ.125226
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/125226/files/LuElbakidze.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.125226?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cobourn, Kelly M. & Burrack, Hannah J. & Goodhue, Rachael E. & Williams, Jeffrey C. & Zalom, Frank G., 2011. "Implications of simultaneity in a physical damage function," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 278-289, September.
    2. Chang,Fwu-Ranq, 2009. "Stochastic Optimization in Continuous Time," Cambridge Books, Cambridge University Press, number 9780521541947, June.
    3. Thomas L. Marsh & Ray G. Huffaker & Garrell E. Long, 2000. "Optimal Control of Vector-Virus-Plant Interactions: The Case of Potato Leafroll Virus Net Necrosis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 556-569.
    4. Greg Hertzler, 1991. "Dynamic Decisions under Risk: Application of Ito Stochastic Control in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1126-1137.
    5. Zhang, Wei & Swinton, Scott M., 2009. "Incorporating natural enemies in an economic threshold for dynamically optimal pest management," Ecological Modelling, Elsevier, vol. 220(9), pages 1315-1324.
    6. Richard M. Adams & Stephen Polasky, 1998. "The Value of El Niño Forecasts in the Management of Salmon: A Stochastic Dynamic Assessment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 765-777.
    7. Lars J. Olson & Santanu Roy, 2002. "The Economics of Controlling a Stochastic Biological Invasion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1311-1316.
    8. LaFrance, Jeffrey T. & Barney, L. Dwayne, 1991. "The envelope theorem in dynamic optimization," Journal of Economic Dynamics and Control, Elsevier, vol. 15(2), pages 355-385, April.
    9. Zivin, Joshua & Hueth, Brent M. & Zilberman, David, 2000. "Managing a Multiple-Use Resource: The Case of Feral Pig Management in California Rangeland," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 189-204, March.
    10. Glenn Fox & Alfons Weersink, 1995. "Damage Control and Increasing Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 33-39.
    11. T.J. Richards & J. Eaves & M. Manfredo & S.E. Naranjo & C.-C. Chu & T.J. Henneberry, 2008. "Spatial-Temporal Model of Insect Growth, Diffusion and Derivative Pricing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 962-978.
    12. David Sunding & Joshua Zivin, 2000. "Insect Population Dynamics, Pesticide Use, and Farmworker Health," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 527-540.
    13. Jean-Daniel M. Saphores, 2000. "The Economic Threshold with a Stochastic Pest Population: A Real Options Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 541-555.
    14. Alain Carpentier & Robert D. Weaver, 1997. "Damage Control Productivity: Why Econometrics Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 47-61.
    15. Hertzler, Greg, 1991. "Dynamic Decisions Under Risk: Applications of Ito Stochastic Control in Agriculture," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145902, Australian Agricultural and Resource Economics Society.
    16. Elbakidze, Levan & Lu, Liang & Eigenbrode, Sanford, 2011. "Evaluating Vector-Virus-Yield Interactions for Peas and Lentils under Climatic Variability: A Limited Dependent Variable Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-17.
    17. Saphores, Jean-Daniel M. & Shogren, Jason F., 2005. "Managing exotic pests under uncertainty: optimal control actions and bioeconomic investigations," Ecological Economics, Elsevier, vol. 52(3), pages 327-339, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaoxue Du & Levan Elbakidze & Liang Lu & R. Garth Taylor, 2022. "Climate Smart Pest Management," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    2. Lu, Liang & Elbakidze, Levan, 2011. "Weather Forecast Based Conditional Pest Management: A Stochastic Optimal Control Investigation," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103655, Agricultural and Applied Economics Association.
    3. Mitchell, Paul D., 2001. "Additive Versus Proportional Pest Damage Functions: Why Ecology Matters," 2001 Annual meeting, August 5-8, Chicago, IL 20775, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Sims, Charles & Finnoff, David, 2013. "When is a “wait and see” approach to invasive species justified?," Resource and Energy Economics, Elsevier, vol. 35(3), pages 235-255.
    5. Dirksmeyer, W., 2008. "Ist eine Reduzierung des Pflanzenschutzmitteleinsatzes im Freilandgemüsebau möglich? Ergebnisse eines bioökonomischen Simulationsmodells," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    6. Pincinato, Ruth Beatriz Mezzalira & Oglend, Atle & Smith, Martin D. & Asche, Frank, 2025. "Biological control of a parasite: The efficacy of cleaner fish in salmon farming," Ecological Economics, Elsevier, vol. 227(C).
    7. Elbakidze, Levan & Lu, Liang & Eigenbrode, Sanford, 2011. "Evaluating Vector-Virus-Yield Interactions for Peas and Lentils under Climatic Variability: A Limited Dependent Variable Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-17.
    8. Dirksmeyer, Walter, 2007. "Ist Eine Reduzierung Des Pflanzenschutzmitteleinsatzes Im Freilandgemüsebau Möglich? Ergebnisse Eines Bioökonomischen Simulationsmodells," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7592, German Association of Agricultural Economists (GEWISOLA).
    9. Marten, Alex L. & Moore, Christopher C., 2011. "An options based bioeconomic model for biological and chemical control of invasive species," Ecological Economics, Elsevier, vol. 70(11), pages 2050-2061, September.
    10. Brausmann, Alexandra & Bretschger, Lucas, 2018. "Economic development on a finite planet with stochastic soil degradation," European Economic Review, Elsevier, vol. 108(C), pages 1-19.
    11. Z. Bar‐Shira & R.E. Just & D. Zilberman, 1997. "Estimation of farmers' risk attitude: an econometric approach," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 211-222, December.
    12. Lim, Terence & Lo, Andrew W. & Merton, Robert C. & Scholes, Myron S., 2006. "The Derivatives Sourcebook," Foundations and Trends(R) in Finance, now publishers, vol. 1(5–6), pages 365-572, April.
    13. Blank, Steven C. & Orloff, Steve B. & Putnam, Daniel H., 2001. "Sequential Stochastic Production Decisions For A Perennial Crop: The Yield/Quality Tradeoff For Alfalfa Hay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), pages 1-17, July.
    14. Yun, Seong Do & Gramig, Benjamin M., 2014. "Dynamic Optimization of Ecosystem Services: A Comparative Analysis of Non-Spatial and Spatially-Explicit Models," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170450, Agricultural and Applied Economics Association.
    15. Elofsson, Katarina & Bengtsson, Goran & Gren, Ing-Marie, 2011. "Optimal Management of Invasive Species with Different Reproduction and Survival Strategies," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114343, European Association of Agricultural Economists.
    16. Niklas Möhring & Martina Bozzola & Stefan Hirsch & Robert Finger, 2020. "Are pesticides risk decreasing? The relevance of pesticide indicator choice in empirical analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 429-444, May.
    17. Gu, Xi & Marsh, Thomas L., 2017. "Pesticide Substitution Under Maximum Residue Limits: Application to Hops Production," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258572, Agricultural and Applied Economics Association.
    18. Saphores, Jean-Daniel M. & Shogren, Jason F., 2005. "Managing exotic pests under uncertainty: optimal control actions and bioeconomic investigations," Ecological Economics, Elsevier, vol. 52(3), pages 327-339, February.
    19. Hertzler, Greg & MacAulay, T. Gordon, 2006. "Small Holders under Risk," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139791, Australian Agricultural and Resource Economics Society.
    20. Fournier, Valerie & Manfredo, Mark R. & Richards, Timothy J. & Eaves, James, 2005. "Managing Economic Risk from Invasive Species: Bug Options," 2005 Annual meeting, July 24-27, Providence, RI 19553, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Crop Production/Industries; Farm Management;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:125226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.