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Specification of Spatial-Dynamic Externalities and Implications for Strategic Behavior in Disease Control

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  • Shady S. Atallah
  • Miguel I. Gómez
  • Jon M. Conrad

Abstract

We propose a novel, distance- and density-dependent specification of externalities that captures spatial dynamics within and between neighboring land parcels. We use this specification to model the short- and long-distance diffusion and control of an infectious disease in two privately owned and ecologically connected vineyards. Using computational experiments to generate individual and aggregate payoffs, our results suggest that ignoring the within-parcel spatial dynamics in the model may overestimate the social cost of an externality. We find that increased resource value heterogeneity, defined as the difference in grape prices received by the two vineyards, has a detrimental impact on aggregate payoffs.

Suggested Citation

  • Shady S. Atallah & Miguel I. Gómez & Jon M. Conrad, 2017. "Specification of Spatial-Dynamic Externalities and Implications for Strategic Behavior in Disease Control," Land Economics, University of Wisconsin Press, vol. 93(2), pages 209-229.
    • Handle: RePEc:uwp:landec:v:93:y:2017:i:2:p:209-229
    Note: DOI: 10.3368/le.93.2.209
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    Cited by:

    1. Atallah, Shadi S. & Huang, Ju-Chin & Leahy, Jessica & Bennett, Karen, 2020. "Preference Heterogeneity and Neighborhood Effect in Invasive Species Control: The Case of Glossy Buckthorn in New Hampshire and Maine Forests," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304623, Agricultural and Applied Economics Association.
    2. Bindewald, Eckart & Atallah, Shady S., 2017. "Achieving multiple goals via voluntary efforts and motivation asymmetry," Ecological Modelling, Elsevier, vol. 354(C), pages 37-48.
    3. Xiaoli Fan & Miguel I. Gómez & Shady S. Atallah & Jon M. Conrad, 2020. "A Bayesian State‐Space Approach for Invasive Species Management: The Case of Spotted Wing Drosophila," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1227-1244, August.
    4. Atallah, Shady S. & Gómez, Miguel I. & Jaramillo, Juliana, 2018. "A Bioeconomic Model of Ecosystem Services Provision: Coffee Berry Borer and Shade-grown Coffee in Colombia," Ecological Economics, Elsevier, vol. 144(C), pages 129-138.
    5. Francois Bareille & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2021. "Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 323-356, June.
    6. Bareille, Francois & Boussard, Hugues & Thenail, Claudine, 2020. "Productive ecosystem services and collective management: Lessons from a realistic landscape model," Ecological Economics, Elsevier, vol. 169(C).
    7. Atallah, Shadi S., 2017. "The bio-economics of managing invasive plant externalities in forests with heterogeneous landowner preferences," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258540, Agricultural and Applied Economics Association.
    8. Siriwardena, Shyamani D. & Cobourn, Kelly M. & Amacher, Gregory S. & Haight, Robert G., 2018. "Cooperative bargaining to manage invasive species in jurisdictions with public and private lands," Journal of Forest Economics, Elsevier, vol. 32(C), pages 72-83.
    9. Rintaro Yamaguchi, 2021. "Genuine Savings and Sustainability with Resource Diffusion," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 451-471, October.
    10. McGinnis, Ian R. & Atallah, Shadi S., 2018. "Shade-grown coffee adoption on neighboring farms: complements, substitutes, or negative spillovers?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274297, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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