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Optimal Control of Locusts in Subsistence Farming Areas

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Abstract

Locust swarms hit subsistence-staple-crop-growing households at random and are not privately controllable. An aerial-spraying optimal control model that supports the said households’ liveli-hood at least expected cost is therefore developed. The qualitative properties of the model are analysed under economically plausible but mild assumptions. The steady state comparative stat-ics reveal that the locust swarm size and the probability of a household’s crop being destroyed by a swarm decrease with the number of households, yield per household, and the staple crop’s replacement price, and increase with the marginal cost of spraying and the planner’s discount rate. A local comparative dynamics analysis is also conducted, as it provides the necessary eco-nomic intuition behind other ostensibly anomalous steady state comparative statics results.

Suggested Citation

  • Levy, Amnon & Caputo, Michael, 2007. "Optimal Control of Locusts in Subsistence Farming Areas," Economics Working Papers wp07-10, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp07-10
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    References listed on IDEAS

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    1. Gershon Feder, 1979. "Pesticides, Information, and Pest Management under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 97-103.
    2. Caputo,Michael R., 2005. "Foundations of Dynamic Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521842723, Enero.
    3. Erik Lichtenberg & Robert C. Spear & David Zilberman, 1993. "The Economics of Reentry Regulation of Pesticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 946-958.
    4. Darwin C. Hall & Richard B. Norgaard, 1973. "On the Timing and Application of Pesticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(2), pages 198-201.
    5. Cowan, Robin & Gunby, Philip, 1996. "Sprayed to Death: Path Dependence, Lock-In and Pest Control Strategies," Economic Journal, Royal Economic Society, vol. 106(436), pages 521-542, May.
    6. 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.
    7. Carlson, Gerald A. & Zilberman, David & Miranowski, John, 1993. "Agricultural and Resource Economics," Staff General Research Papers Archive 11104, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Optimal control; local stability; steady state comparative statics; local comparative dynamics;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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