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Prevention or Control: Optimal Government Policies for Invasive Species Management

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  • Kim, C.S.
  • Lubowski, Ruben N.
  • Lewandrowski, Jan
  • Eiswerth, Mark E.

Abstract

We present a conceptual, but empirically applicable, model for determining the optimal allocation of resources between exclusion and control activities for managing an invasive species with an uncertain discovery time. This model is used to investigate how to allocate limited resources between activities before and after the first discovery of an invasive species and the effects of the characteristics of an invasive species on limited resource allocation. The optimality conditions show that it is economically efficient to spend a larger share of outlays for exclusion activities before, rather than after, a species is first discovered, up to a threshold point. We also find that, after discovery, more exclusionary measures and fewer control measures are optimal, when the pest population is less than a threshold. As the pest population increases beyond this threshold, the exclusionary measures are no longer optimal. Finally, a comparative dynamic analysis indicates that the efficient level of total expenditures on preventive and control measures decreases with the level of the invasive species stock and increases with the intrinsic population growth rate, the rate of additional discoveries avoided, and the maximum possible pest population.

Suggested Citation

  • Kim, C.S. & Lubowski, Ruben N. & Lewandrowski, Jan & Eiswerth, Mark E., 2006. "Prevention or Control: Optimal Government Policies for Invasive Species Management," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-12, April.
  • Handle: RePEc:ags:arerjl:10176
    DOI: 10.22004/ag.econ.10176
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    Cited by:

    1. Carrasco, Luis Roman & Baker, R & MacLeod, A & Knight, J. D. & Mumford, J. D., 2009. "Optimal and robust control of invasive alien species spreading in homogeneous landscapes," MPRA Paper 57757, University Library of Munich, Germany.
    2. Carson Reeling & Richard D. Horan, 2018. "Economic Incentives for Managing Filterable Biological Pollution Risks from Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(3), pages 651-671, July.
    3. Lewandrowski, Jan & Kim, C.S. & Aillery, Marcel, 2014. "Carbon sequestration through afforestation under uncertainty," Forest Policy and Economics, Elsevier, vol. 38(C), pages 90-96.
    4. C. S. Kim & Glenn D. Schaible & Jan Lewandrowski & Utpal Vasavada, 2010. "Managing Invasive Species in the Presence of Endogenous Technological Change with Uncertainty," Risk Analysis, John Wiley & Sons, vol. 30(2), pages 250-260, February.
    5. Finnoff, David & Horan, Richard D. & Shogren, Jason F. & Reeling, Carson & Berry, Kevin, 2016. "Natural vs anthropogenic risk reduction: Facing invasion risks involving multi-stable outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 113-123.
    6. Le T P Nghiem & Tarek Soliman & Darren C J Yeo & Hugh T W Tan & Theodore A Evans & John D Mumford & Reuben P Keller & Richard H A Baker & Richard T Corlett & Luis R Carrasco, 2013. "Economic and Environmental Impacts of Harmful Non-Indigenous Species in Southeast Asia," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-9, August.
    7. Cook, David & Carrasco, Luis Roman & Paini, Dean & Fraser, Rob, 2011. "Estimating the social welfare effects of New Zealand apple imports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 1-22.
    8. Carrasco, L.R. & Mumford, J.D. & MacLeod, A. & Knight, J.D. & Baker, R.H.A., 2010. "Comprehensive bioeconomic modelling of multiple harmful non-indigenous species," Ecological Economics, Elsevier, vol. 69(6), pages 1303-1312, April.
    9. Bate, Andrew M. & Jones, Glyn & Kleczkowski, Adam & MacLeod, Alan & Naylor, Rebecca & Timmis, Jon & Touza, Julia & White, Piran C.L., 2016. "Modelling the impact and control of an infectious disease in a plant nursery with infected plant material inputs," Ecological Modelling, Elsevier, vol. 334(C), pages 27-43.
    10. Nghiem, Le T.P. & Soliman, Tarek & Yeo, Darren C. J. & Tan, Hugh T. W. & Evans, Theodore A. & Mumford, John D. & Keller, Reuben P. & Baker, Richard H. A. & Corlett, Richard T. & Carrasco, Luis R., 2013. "Economic and Environmental Impacts of Harmful Non-Indigenous Species in Southeast Asia," MPRA Paper 57760, University Library of Munich, Germany.
    11. Horan, Richard & Finnoff, David & Reeling, Carson & Berry, Kevin, "undated". "Optimal Management of a Native Species Facing Species or Pathogen Invasion Risks Involving Multi-Stable Outcomes," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170693, Agricultural and Applied Economics Association.
    12. Liu, Yanxu & Sims, Charles, 2016. "Spatial-dynamic externalities and coordination in invasive species control," Resource and Energy Economics, Elsevier, vol. 44(C), pages 23-38.
    13. Yemshanov, Denys & Haight, Robert G. & Koch, Frank H. & Lu, Bo & Venette, Robert & Fournier, Ronald E. & Turgeon, Jean J., 2017. "Robust Surveillance and Control of Invasive Species Using a Scenario Optimization Approach," Ecological Economics, Elsevier, vol. 133(C), pages 86-98.
    14. McKee, Gregory J., 2011. "Coordinated pest management decisions in the presence of management externalities: The case of greenhouse whitefly in California-grown strawberries," Agricultural Systems, Elsevier, vol. 104(1), pages 94-103, January.
    15. Kim, C. S. & Schaible, Glenn & Garrett, Lynn & Lubowski, Ruben & Lee, Donna, 2008. "Economic Impacts of the U. S. Soybean Aphid Infestation: A Multi-Regional Competitive Dynamic Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 227-242, October.
    16. Epanchin-Niell, Rebecca S. & Liebhold, Andrew M., 2015. "Benefits of invasion prevention: Effect of time lags, spread rates, and damage persistence," Ecological Economics, Elsevier, vol. 116(C), pages 146-153.
    17. Carrasco, Luis Roman & MacLeod, Alan & Knight, John D. & Baker, Richard & Mumford, John D., 2009. "Optimal Control of Spreading Biological Invasions: For How Long Should We Apply the Brake?," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 50940, Agricultural Economics Society.
    18. Katarina Elofsson & Ing-Marie Gren, 2015. "Regulating invasive species with different life history," Journal of Bioeconomics, Springer, vol. 17(2), pages 113-136, July.
    19. Kim, C.S. & Schaible, Glenn D. & Garrett, Lynn & Lubowski, Ruben N. & Lee, Donna J., 2006. "Biological Invasions: The Case of Soybean Aphid Infestation," 2006 Annual meeting, July 23-26, Long Beach, CA 21163, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Berry, Kevin & Finnoff, David & Horan, Richard D. & Shogren, Jason F., 2015. "Managing the endogenous risk of disease outbreaks with non-constant background risk," Journal of Economic Dynamics and Control, Elsevier, vol. 51(C), pages 166-179.

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