IDEAS home Printed from https://ideas.repec.org/p/ags/umdrwp/28591.html
   My bibliography  Save this paper

The Economics Of Controlling A Biological Invasion

Author

Listed:
  • Olson, Lars J.
  • Roy, Santanu

Abstract

The paper develops a simple economic model of a biological invasion. The natural growth of the invasion is non-convex and the immediate cost of controlling the invasion depends on the level of current control as well as the current size of the invasion. Greater control raises control costs today while reducing damages - now and in the future. In addition, by decreasing the size of the invasion, increased control today raises the marginal cost of control in the future. As a consequence, the optimal path of an invasion is not necessarily monotonic. When the marginal control cost declines sharply with the size of invasion, it may be optimal to allow an invasion to grow naturally before it is controlled. We characterize conditions under which it is optimal to eradicate an invasive species (immediately and eventually) and conditions under which it is optimal to manage an invasion without complete eradication.

Suggested Citation

  • Olson, Lars J. & Roy, Santanu, 2003. "The Economics Of Controlling A Biological Invasion," Working Papers 28591, University of Maryland, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:umdrwp:28591
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/28591
    Download Restriction: no

    References listed on IDEAS

    as
    1. Benveniste, L M & Scheinkman, J A, 1979. "On the Differentiability of the Value Function in Dynamic Models of Economics," Econometrica, Econometric Society, vol. 47(3), pages 727-732, May.
    2. Dechert, W. Davis & Nishimura, Kazuo, 1983. "A complete characterization of optimal growth paths in an aggregated model with a non-concave production function," Journal of Economic Theory, Elsevier, vol. 31(2), pages 332-354, December.
    3. 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.
    4. Nyarko, Yaw & Olson, Lars J., 1991. "Stochastic dynamic models with stock-dependent rewards," Journal of Economic Theory, Elsevier, vol. 55(1), pages 161-168, October.
    5. Olson, Lars J. & Roy, Santanu, 1996. "On Conservation of Renewable Resources with Stock-Dependent Return and Nonconcave Production," Journal of Economic Theory, Elsevier, vol. 70(1), pages 133-157, July.
    6. 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.
    7. Majumdar, Mukul & Mitra, Tapan, 1982. "Intertemporal allocation with a non-convex technology: The aggregative framework," Journal of Economic Theory, Elsevier, vol. 27(1), pages 101-136, June.
    8. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 964-975.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, Donna J. & Motoki, Michael & Vanderwoude, Casper & Nakamoto, Stuart T. & Leung, PingSun, 2015. "Taking the sting out of Little Fire Ant in Hawaii," Ecological Economics, Elsevier, vol. 111(C), pages 100-110.
    2. 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.
    3. Lars Olson & Santanu Roy, 2008. "Controlling a biological invasion: a non-classical dynamic economic model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(3), pages 453-469, September.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    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:umdrwp:28591. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.