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Spatial-Dynamic Externalities and Coordination in Invasive Species Control

  • Liu, Yanxu
  • Sims, Charles

This study investigates a spatial externality common in invasive species control decisions made by multiple, spatially-connected decision makers (i.e., individual landowners, state and federal agencies, etc.). The externality arises due to the different spatial considerations of decision-makers which drives a wedge between individual and social damages, and results in a suboptimal level of individual control. The number of decision makers, the size of individual parcels, and the spatial configuration of small and large parcels influence the severity of the externality and consequently the insufficiency of privately supplied invasive species control. To internalize the externality, this paper provides a corrective mechanism in which individuals compensate invaded individuals for control actions that preserve uninvaded areas. These results shed light on the coordination problem in transboundary invasive species issues.

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Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 151293.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:151293
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