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The Economic Consequences of Pierce's Disease and Related Policy in the California Winegrape Industry

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  • Alston, Julian M.
  • Fuller, Kate B.
  • Kaplan, Jonathan D.
  • Tumber, Kabir P.

Abstract

Since 2000, the California Department of Food and Agriculture (CDFA), has spent approximately $40 million per year to contain and control the Glassy Winged Sharpshooter (GWSS), which spreads Pierce’s Disease (PD). Compliance with the program has cost the nursery industry approximately $7 million per year in recent years. Using a simulation model of the market for California winegrapes, we estimate PD costs winegrape growers and consumers $61 million annually, with the current program in place. If the PD Control Program ended, and the GWSS was distributed freely throughout California, the annual cost to the winegrape industry would increase by $261 million.

Suggested Citation

  • Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2012. "The Economic Consequences of Pierce's Disease and Related Policy in the California Winegrape Industry," Working Papers 162520, Robert Mondavi Institute Center for Wine Economics.
    • Handle: RePEc:ags:mondwp:162520
    DOI: 10.22004/ag.econ.162520
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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.
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    6. Fuller, Kate B. & Alston, Julian M., 2012. "The Demand for California Wine Grapes," Journal of Wine Economics, Cambridge University Press, vol. 7(2), pages 192-212, November.
    7. Zvi Griliches, 1958. "Research Costs and Social Returns: Hybrid Corn and Related Innovations," Journal of Political Economy, University of Chicago Press, vol. 66(5), pages 419-419.
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    9. Volpe, Richard & Green, Richard & Heien, Dale & Howitt, Richard, 2010. "Estimating the Supply Elasticity of California Wine Grapes Using Regional Systems of Equations," Journal of Wine Economics, Cambridge University Press, vol. 5(2), pages 219-235, April.
    10. Fuller, Kate B. & Alston, Julian M. & Sanchirico, James N., 2011. "Spatial Externalities and Vector-Borne Plant Diseases: Pierce’s Disease and the Blue-Green Sharpshooter in the Napa Valley," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103865, Agricultural and Applied Economics Association.
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    Cited by:

    1. Kaplan, Jonathan D. & Norton, Max & Baumgartner, Kendra, 2018. "An ounce of prevention and a pound of cure: the substitutability or complementarity of grapevine trunk disease management practices," 2018 Annual Meeting, August 5-7, Washington, D.C. 274361, Agricultural and Applied Economics Association.
    2. Alston, Julian M. & Fuller, Kate B. & Golino, Deborah A., 2013. "The Benefits from Certified Virus-Free Nursery Stock: A Case Study of Grapevine Leafroll-3 in the North Coast Region of California," Working Papers 162527, Robert Mondavi Institute Center for Wine Economics.
    3. Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2013. "The Costs and Benefits of Pierce's Disease Research in the California Winegrape Industry," Working Papers 162525, Robert Mondavi Institute Center for Wine Economics.
    4. Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2015. "Assessing the returns to R&D on perennial crops: the costs and benefits of Pierce’s disease research in the California winegrape industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), January.
    5. Julian M. Alston & Kym Anderson & Olena Sambucci, 2019. "Drifting Towards Bordeaux? The Evolving Varietal Emphasis of U.S. Wine Regions," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 23, pages 559-598, World Scientific Publishing Co. Pte. Ltd..
    6. Fuller, Kate Binzen & Sanchirico, James N. & Alston, Julian M., 2017. "The Spatial-Dynamic Benefits from Cooperative Disease Control in a Perennial Crop," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.

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