Measuring the economic benefits and costs of Bluetongue virus outbreak and control strategies in Scotland

Abdulai Fofana, Luiza Toma, Dominic Moran, George J. Gunn and Alistair W. Stott

No 51052, 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland from Agricultural Economics Society

Abstract: This paper provides an ex-ante economic analysis, comparing six alternative control strategies for the eradication of Bluetongue virus 8 against five incursion scenarios in cattle and sheep populations. The economic analysis assumes a common baseline unavoidable cost of public and private measures that together contribute to prevention of incursion of BTV8 into Scotland. These costs continue over the five year horizon of this analysis regardless of whether a BTV8 epidemic ensues in Scotland and their total present value was found to be approximately £141m over the 5year period. The benefit of this investment is the costs of a BTV8 outbreak avoided; which depends on the time, location and nature of the incursion, on the control strategies adopted to counter each incursion, on the persistence of the incursion and on the opportunities to mitigate the damage. Specific variations in all these aspects were explored. The benefit-cost ratios were ranked within each incursion scenario to evaluate the efficiency of control outlays. Although the economic model found that benefit-cost ratios were greater than 1 for all interventions strategies examined, the control strategy option with 100% vaccination and protection zone set at Scottish Borders were economically preferable. This implies that if avoided this control option would deliver the greatest benefit from investment in baseline prevention costs. However, in terms of outbreak losses, this vaccination strategy was always most costly. On the other hand, the control strategy with 50% vaccination and all Scotland as a protection zone often provides the lowest benefits in all control options examined

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 19
Date: 2009-04-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc09:51052

DOI: 10.22004/ag.econ.51052

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