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Stepping Stones for Biological Invasion: A Bioeconomic Model of Transferable Risk

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  • Travis Warziniack
  • David Finnoff
  • Jonathan Bossenbroek
  • Jason Shogren
  • David Lodge

Abstract

Herein we model the widespread dispersal and management of an invasive species as a weak-link public good. The risk of introduction is driven in part by economic activity, is influenced by policies directed at the risk, and economic activity responds/adapts to the risk. Framed around recent introductions and rapid spread of dreissenid mussels in the Western United States, we find three key results. First, partial equilibrium estimates of welfare loss are significantly overestimated relative to general equilibrium estimates. If ecosystem services and market goods are substitutes the partial equilibrium bias is greater than if they are compliments. Second, well-intended policies do not necessarily reduce overall risk; risk reduction actions can transfer risk to another time or location, or both, which may increase total risk. Third, policies of quotas and inspections have to be extreme to improve welfare, with inspections having advantages over quotas.
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  • Travis Warziniack & David Finnoff & Jonathan Bossenbroek & Jason Shogren & David Lodge, 2011. "Stepping Stones for Biological Invasion: A Bioeconomic Model of Transferable Risk," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(4), pages 605-627, December.
    • Handle: RePEc:kap:enreec:v:50:y:2011:i:4:p:605-627
    DOI: 10.1007/s10640-011-9485-7
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    Cited by:

    1. McDermott, Shana M. & Finnoff, David C. & Shogren, Jason F., 2013. "The welfare impacts of an invasive species: Endogenous vs. exogenous price models," Ecological Economics, Elsevier, vol. 85(C), pages 43-49.
    2. Travis W. Warziniack & Kenneth Bagstad & Michael Knowles & Christopher Mihiar & Arpita Nehra & Charles Rhodes & Leslie Sanchez & Christopher Sichko & Charles B. Sims, 2024. "Natural Capital Accounting on Forested Lands in the United States: An Application to the Colorado River Basin," NBER Chapters, in: Measuring and Accounting for Environmental Public Goods: A National Accounts Perspective, National Bureau of Economic Research, Inc.
    3. Eli Fenichel & Timothy Richards & David Shanafelt, 2014. "The Control of Invasive Species on Private Property with Neighbor-to-Neighbor Spillovers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 231-255, October.
    4. Sims, Charles & Finnoff, David, 2013. "When is a “wait and see” approach to invasive species justified?," Resource and Energy Economics, Elsevier, vol. 35(3), pages 235-255.
    5. 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).
    6. Warziniack, Travis W. & Finnoff, David & Shogren, Jason F., 2013. "Public economics of hitchhiking species and tourism-based risk to ecosystem services," Resource and Energy Economics, Elsevier, vol. 35(3), pages 277-294.
    7. Apriesnig, Jenny L. & Warziniack, Travis W. & Finnoff, David C. & Zhang, Hongyan & Lee, Katherine D. & Mason, Doran M. & Rutherford, Edward S., 2022. "The consequences of misrepresenting feedbacks in coupled human and environmental models," Ecological Economics, Elsevier, vol. 195(C).
    8. Nelson, Nanette & Pete, Shandin & Neher, Chris & Duffield, John & Devlin, Shawn, 2022. "Tribal Perspectives on Preventing the Introduction of Zebra Mussels into Flathead Lake, Montana," SocArXiv fk4xj, Center for Open Science.

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    More about this item

    Keywords

    Bioeconomic; Invasive species; Risk; Transferable risk; Welfare;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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