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On Container Versus Time Based Inspection Policies in Invasive Species Management

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  • Batabyal, Amitrajeet A.
  • Nijkamp, Peter

Abstract

We study the problem of precluding biological invasions caused by ships transporting internationally traded goods in containers between different regions of the world. Using the long run expected net cost (LRENC) of inspections as the apposite managerial objective, we address the following important question: Given that inspection is a cyclical activity, is the LRENC lower when a port manager's inspector inspects cargo upon the arrival of a specified number of containers (container policy) or is this LRENC lower when this inspector inspects cargo at fixed points in time (temporal policy)? We construct a queuing theoretic model and show that in an inspection cycle, irrespective of whether the inspection policy choice is made on the basis of an explicit optimization exercise or on the basis of rules of thumb, the container policy is superior to the temporal policy because the container policy results in lower LRENC from inspection activities.

Suggested Citation

  • Batabyal, Amitrajeet A. & Nijkamp, Peter, 2005. "On Container Versus Time Based Inspection Policies in Invasive Species Management," 2005 Annual meeting, July 24-27, Providence, RI 19356, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19356
    DOI: 10.22004/ag.econ.19356
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    1. Amitrajeet Batabyal & Basudeb Biswas & E. Godfrey, 2001. "On the Choice Between the Stocking Rate and Time in Range Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 211-223, November.
    2. Mark E. Eiswerth & G. Cornelis van Kooten, 2002. "Uncertainty, Economics, and the Spread of an Invasive Plant Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1317-1322.
    3. Batabyal, Amitrajeet A. & Beladi, Hamid, 2006. "International trade and biological invasions: A queuing theoretic analysis of the prevention problem," European Journal of Operational Research, Elsevier, vol. 170(3), pages 758-770, May.
    4. 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.
    5. Mark Eiswerth & Wayne Johnson, 2002. "Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 319-342, November.
    6. Barbier, Edward B., 2001. "A note on the economics of biological invasions," Ecological Economics, Elsevier, vol. 39(2), pages 197-202, November.
    7. Richard D. Horan & Charles Perrings & Frank Lupi & Erwin H. Bulte, 2002. "Biological Pollution Prevention Strategies under Ignorance:The Case of Invasive Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1303-1310.
    8. Amit Batabyal & Hamid Beladi & Won Koo, 2005. "Maritime Trade, Biological Invasions, and the Properties of Alternate Inspection Regimes," ERSA conference papers ersa05p164, European Regional Science Association.
    9. Roberts, Marc J. & Spence, Michael, 1976. "Effluent charges and licenses under uncertainty," Journal of Public Economics, Elsevier, vol. 5(3-4), pages 193-208.
    10. Albert Breton & Giorgio Brosio & Silvana Dalmazzone & Giovanna Garrone, 2009. "Introduction," Chapters, in: Albert Breton & Giorgio Brosio & Silvana Dalmazzone & Giovanna Garrone (ed.), Governing the Environment, chapter 1, Edward Elgar Publishing.
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    Cited by:

    1. Batabyal, Amitrajeet & Beladi, Hamid, 2013. "Ship inspections in invasive species management: Alternate regimes and their properties," MPRA Paper 72269, University Library of Munich, Germany.
    2. repec:ebl:ecbull:v:17:y:2008:i:15:p:1-9 is not listed on IDEAS
    3. Batabyal, Amitrajeet & Yoo, Seung Jick, 2008. "A theoretical analysis of random inspections and fines in invasive species management," MPRA Paper 72007, University Library of Munich, Germany.
    4. Batabyal, Amitrajeet A. & Beladi, Hamid, 2009. "Trade, the damage from alien species, and the effects of protectionism under alternate market structures," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 389-401, May.
    5. Surkov, Ilya V. & Oude Lansink, Alfons G.J.M. & van Kooten, Olaf, 2006. "An empirical model of optimal import phytosanitary inspection," 2006 Annual meeting, July 23-26, Long Beach, CA 21253, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Tao Peng & Seung Jick Yoo, 2008. "A theoretical analysis of random inspections and fines in invasive species management," Economics Bulletin, AccessEcon, vol. 17(15), pages 1-9.
    7. An-Sing Chen & Hui-Jyuan Gao & Mark Leung, 2008. "Is Trading Imbalance a Better Explanatory Factor in the Volatility Process? Intraday and Daily Evidence from E-mini S&P 500 Index Futures and Information-Based Hypotheses," Working Papers 0039, College of Business, University of Texas at San Antonio.

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