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The macroeconomic cost of catastrophic pollinator declines

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  • Bauer, Dana Marie
  • Sue Wing, Ian

Abstract

We develop a computable general equilibrium (CGE) approach to assess the macroeconomic impacts of productivity shocks due to catastrophic losses of pollination ecosystem services at global and regional scales. In most regions, producers of pollinator dependent crops end up benefiting because direct output losses are outweighed by increased prices, while non-agricultural sectors experience large adverse indirect impacts, resulting in overall losses whose magnitudes vary substantially. By comparison, partial equilibrium analyses tend to overstate the costs to agricultural producers, understate aggregate economy-wide losses, and overstate the impacts on consumers' welfare. Our results suggest an upper bound on global willingness to pay for agricultural pollination services of $127–$152 billion.

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  • Bauer, Dana Marie & Sue Wing, Ian, 2016. "The macroeconomic cost of catastrophic pollinator declines," Ecological Economics, Elsevier, vol. 126(C), pages 1-13.
  • Handle: RePEc:eee:ecolec:v:126:y:2016:i:c:p:1-13
    DOI: 10.1016/j.ecolecon.2016.01.011
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    Cited by:

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    2. Lippert, Christian & Feuerbacher, Arndt & Narjes, Manuel, 2021. "Revisiting the economic valuation of agricultural losses due to large-scale changes in pollinator populations," Ecological Economics, Elsevier, vol. 180(C).
    3. Biden, Scott & Ker, Alan P. & Larue, Bruno & Duff, Stephen, 2024. "Economic impacts of a disease outbreak in Canada’s pork industry: Case of a price-taking, open country," Food Policy, Elsevier, vol. 125(C).
    4. Kleftodimos, Georgios & Gallai, Nicola & Rozakis, Stelios & Képhaliacos, Charilaos, 2021. "A farm-level ecological-economic approach of the inclusion of pollination services in arable crop farms," Land Use Policy, Elsevier, vol. 107(C).
    5. Bartolomeo Toffano & M. Bruna Zolin, 2021. "Ecosystem services value: a literature review," Working Papers 2021:07, Department of Economics, University of Venice "Ca' Foscari".
    6. Johnson, Justin Andrew & Baldos, Uris Lantz & Hertel, Thomas & Nootenboom, Chris & Polasky, Stephen & Roxburgh, Toby, 2020. "Global Futures: Modelling the global economic impacts of environmental change to support policy-making," Technical Papers 323944, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Beatrice N. Dingha & Gilbert N. Mukoko & Ikponmwosa N. Egbon & Louis E. Jackai, 2024. "Intercropping Industrial Hemp and Cowpea Enhances the Yield of Squash—A Pollinator-Dependent Crop," Agriculture, MDPI, vol. 14(4), pages 1-11, April.
    8. Tibesigwa, Byela & Siikamäki, Juha & Lokina, Razack & Alvsilver, Jessica, 2018. "Naturally Available Wild Pollination Services Have Economic Value for Nature Dependent Small-Holder Crop Farms in Tanzania," EfD Discussion Paper 18-15, Environment for Development, University of Gothenburg.
    9. Uwingabire, Zafarani & Gallai, Nicola, 2024. "Impacts of degraded pollination ecosystem services on global food security and nutrition," Ecological Economics, Elsevier, vol. 217(C).
    10. Perry, Edward D. & Moschini, GianCarlo, 2020. "Neonicotinoids in U.S. maize: Insecticide substitution effects and environmental risk," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    11. Brockmann, Stephanie & Finnoff, David C. & Mason, Doran M. & Rutherford, Edward S. & Zhang, Hongyan, 2024. "Consequences of ecological aggregation in general equilibrium analysis of perturbed ecosystems," Ecological Economics, Elsevier, vol. 218(C).
    12. Rafaella Guimarães Porto & Rita Fernandes Almeida & Oswaldo Cruz-Neto & Marcelo Tabarelli & Blandina Felipe Viana & Carlos A. Peres & Ariadna Valentina Lopes, 2020. "Pollination ecosystem services: A comprehensive review of economic values, research funding and policy actions," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1425-1442, December.
    13. Céline Moreaux & Jette Bredahl Jacobsen & Jürgen Meyerhoff & Bo Dalsgaard & Carsten Rahbek & Niels Strange, 2023. "Distance and Regional Effects on the Value of Wild Bee Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 37-63, January.

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