An Options Based Bioeconomic Model for Biological and Chemical Control of Invasive Species
The management of non-native invasive species is a complex but crucial task given the potential for economic and environmental damages. For many invasions the development of socially optimal control strategies requires more than is offered by the single-species, single-control models that have dominated this area of research. We develop a general stochastic optimal control framework that accommodates multiple interacting species while accounting for uncertainty in the temporal population dynamics. This extension to the current line of bioeconomic control models allows for the design of optimal management strategies that utilize both chemical and biological controls in an environment of uncertainty and irreversibility. We demonstrate the benefits of combining chemical and biological controls in long term management strategies through a case study of the hemlock woolly adelgid infestation in the eastern United States. In this application we find that the introduction of natural predators is usually sufficient to manage the infestation, though the availability of chemical controls is important when the detection of an invasion or the subsequent response is delayed.
|Date of creation:||May 2010|
|Date of revision:||May 2010|
|Contact details of provider:|| Postal: 1200 Pennsylvania Ave., N.W., Washington, D.C. 20460|
Web page: https://www.epa.gov/environmental-economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Sethi, Gautam & Costello, Christopher & Fisher, Anthony C. & Hanemann, W. Michael & Karp, Larry, 2004.
"Fishery Management Under Multiple Uncertainty,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt8122f9d2, Department of Agricultural & Resource Economics, UC Berkeley.
- Koji Kotani & Makoto Kakinaka & Hiroyuki Matsuda, 2006. "Dynamic Economic Analysis on Invasive Species Management: Some Policy Implications of Catchability," Working Papers EMS_2006_16, Research Institute, International University of Japan.
- Sabrina J. Lovell & Susan F. Stone, 2005.
"The Economic Impacts of Aquatic Invasive Species: A Review of the Literature,"
NCEE Working Paper Series
200502, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jan 2005.
- Lovell, Sabrina J. & Stone, Susan F. & Fernandez, Linda, 2006. "The Economic Impacts of Aquatic Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
- Harper, Carolyn R., 1991. "Predator-Prey Systems In Pest Management," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), April.
- Kenneth L. Judd, 1998. "Numerical Methods in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100711, June.
- 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.
- Mark Eiswerth & Wayne Johnson, 2002. "Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(3), pages 319-342, November.
- Christopher Costello & Stephen Polasky & Andrew Solow, 2001. "Renewable resource management with environmental prediction," Canadian Journal of Economics, Canadian Economics Association, vol. 34(1), pages 196-211, February.
- Clark, Colin W. & Kirkwood, Geoffrey P., 1986. "On uncertain renewable resource stocks: Optimal harvest policies and the value of stock surveys," Journal of Environmental Economics and Management, Elsevier, vol. 13(3), pages 235-244, September.
- Christopher Moore & Daniel Phaneuf & Walter Thurman, 2011. "A Bayesian Bioeconometric Model of Invasive Species Control: The Case of the Hemlock Woolly Adelgid," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 50(1), pages 1-26, September.
- 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.
- 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.
- Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
- 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.
- Higgins, Steven I. & Azorin, Esteban J. & Cowling, Richard M. & Morris, Mike J., 1997. "A dynamic ecological-economic model as a tool for conflict resolution in an invasive-alien-plant, biological control and native-plant scenario," Ecological Economics, Elsevier, vol. 22(2), pages 141-154, August.
When requesting a correction, please mention this item's handle: RePEc:nev:wpaper:wp201006. 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: (Cynthia Morgan)
If references are entirely missing, you can add them using this form.