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Bioeconomics of a Marine Disease

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  • Jon M. Conrad
  • Daniel Rondeau

Abstract

We study the economic impact of the viral disease AVG, its stochastic transmission across abalone reefs in southern Australia, and the optimal management response as AVG approaches an uninfected reef. Using conservative estimates of the virulence and mortality rates associated with the disease, we find it optimal to maintain the pre-AVG steady-state biomass on reef j until AVG has reached reef j - 1. The size of the optimal harvest when AVG has reached reef j - 1 is significant, ranging from 85% of the pre-AVG steady-state stock plus its annual growth, to 100% when the mortality rate associated with the virus reaches 80%. Increases in the probability of transmission, P, also increase the size of the drawdown but to a lesser extent than the mortality rate. A regime shift in the intrinsic growth rate following infection also plays a central role in determining the level of pre-emptive harvesting.

Suggested Citation

  • Jon M. Conrad & Daniel Rondeau, 2014. "Bioeconomics of a Marine Disease," Working Papers 2014-02, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    • Handle: RePEc:rep:wpaper:2014-02
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    File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2014-02.pdf
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    References listed on IDEAS

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    1. Janssen, Marco A. & Anderies, John M. & Walker, Brian H., 2004. "Robust strategies for managing rangelands with multiple stable attractors," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 140-162, January.
    2. Smith, Martin D. & Sanchirico, James N. & Wilen, James E., 2009. "The economics of spatial-dynamic processes: Applications to renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 104-121, January.
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    Cited by:

    1. José G. Vargas-Hernández & Karina Pallagst & Patricia Hammer, 2017. "Bio economy’s institutional and policy framework for the sustainable development of nature´s ecosystems," Economia Coyuntural,Revista de temas de perspectivas y coyuntura, Instituto de Investigaciones Economicas y Sociales 'Jose Ortiz Mercado' (IIES-JOM), Facultad de Ciencias Economicas, Administrativas y Financieras, Universidad Autonoma Gabriel Rene Moreno, vol. 2(3), pages 51-104.
    2. Carolyn Fischer & Atle G. Guttormsen & Martin D. Smith, 2017. "Disease Risk and Market Structure in Salmon Aquaculture," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-29, April.
    3. Huang, Biao & Perrings, Charles, 2017. "Managing the Risks of Sea Lice Transmission Between Salmon Aquaculture and Wild Pink Salmon Fishery," Ecological Economics, Elsevier, vol. 142(C), pages 228-237.

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    More about this item

    Keywords

    fisheries; bioeconomics; marine pathogens; disease transmission; epidemiology; optimal management;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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