Costs and benefits of controlling quarantine diseases: a bio-economic modeling approach

Annemarie Breukers, Monique Mourits, Wopke van der Werf and Alfons Oude Lansink

Agricultural Economics, 2008, vol. 38, issue 2, pages 137-149

Abstract: This article describes a bio-economic model to quantify the costs and benefits of controlling plant quarantine diseases. The model integrates the epidemiology and economic consequences of a quarantine disease. It allows for "ex ante" evaluation of control scenarios for their cost-effectiveness, taking into account potential export losses resulting from presence of the disease. The model is applied to brown rot of potato in the Dutch potato production chain. Simulation results show that under the current (2006) control policy, the average yearly costs of brown rot are 7.7 million euros. Reducing monitoring frequency increases the costs to 12.5 million euros, 60% of which are export losses. It is also shown that, due to potential long-term effects of a strategy, conclusions on cost-effectiveness of a strategy depend on the length of the period over which that strategy is observed. These applications illustrate the potential of the bio-economic model to facilitate the development of cost-effective and soundly based control policies. Copyright 2008 International Association of Agricultural Economists.

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