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Measuring the economic benefits and costs of Bluetongue virus outbreak and control strategies in Scotland

Listed author(s):
  • Fofana, Abdulai
  • Toma, Luiza
  • Moran, Dominic
  • Gunn, George J.
  • Stott, Alistair W.

This paper provides an ex-ante economic analysis, comparing six alternative control strategies for the eradication of Bluetongue virus 8 against five incursion scenarios in cattle and sheep populations. The economic analysis assumes a common baseline unavoidable cost of public and private measures that together contribute to prevention of incursion of BTV8 into Scotland. These costs continue over the five year horizon of this analysis regardless of whether a BTV8 epidemic ensues in Scotland and their total present value was found to be approximately £141m over the 5year period. The benefit of this investment is the costs of a BTV8 outbreak avoided; which depends on the time, location and nature of the incursion, on the control strategies adopted to counter each incursion, on the persistence of the incursion and on the opportunities to mitigate the damage. Specific variations in all these aspects were explored. The benefit-cost ratios were ranked within each incursion scenario to evaluate the efficiency of control outlays. Although the economic model found that benefit-cost ratios were greater than 1 for all interventions strategies examined, the control strategy option with 100% vaccination and protection zone set at Scottish Borders were economically preferable. This implies that if avoided this control option would deliver the greatest benefit from investment in baseline prevention costs. However, in terms of outbreak losses, this vaccination strategy was always most costly. On the other hand, the control strategy with 50% vaccination and all Scotland as a protection zone often provides the lowest benefits in all control options examined

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Paper provided by Agricultural Economics Society in its series 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland with number 51052.

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Date of creation: 01 Apr 2009
Handle: RePEc:ags:aesc09:51052
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  1. Stockton, David J & Glassman, James E, 1987. "An Evaluation of the Forecast Performance of Alternative Models of Inflation," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 108-117, February.
  2. Malcolm, Bill, 2003. "What Price Animal Health - And Whose Problem is it Anyway?," Australasian Agribusiness Perspectives 234167, University of Melbourne, Melbourne School of Land and Environment.
  3. Litterman, Robert B, 1986. "Forecasting with Bayesian Vector Autoregressions-Five Years of Experience," Journal of Business & Economic Statistics, American Statistical Association, vol. 4(1), pages 25-38, January.
  4. John Mclnerney, 1996. "Old Economics For New Problems -Livestock Disease: Presidential Address," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 295-314.
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