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Stepping stones for biological invasion: A bioeconomic model of transferable risk

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  • Warziniack, Travis
  • Finnoff, David C.
  • Bossenbroek, Jonathan
  • Shogren, Jason F.
  • Lodge, David

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.

Suggested Citation

  • Warziniack, Travis & Finnoff, David C. & Bossenbroek, Jonathan & Shogren, Jason F. & Lodge, David, 2010. "Stepping stones for biological invasion: A bioeconomic model of transferable risk," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60957, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:60957
    DOI: 10.22004/ag.econ.60957
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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. 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).
    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. 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.
    5. 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).
    6. 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.
    7. 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.
    8. 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.

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    More about this item

    Keywords

    Environmental Economics and Policy; Risk and Uncertainty;

    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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