An Empirical Assessment of the Economic Damage Caused by Apple Marssonina Blotch and Pear Scab Outbreaks in Korea

Daeyoung Kwon, Soyoon Kim, Yongjoon Kim, Minsu Son, Kwansoo Kim, Donghwan An and Brian H. S. Kim
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Daeyoung Kwon: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
Soyoon Kim: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
Yongjoon Kim: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
Minsu Son: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
Kwansoo Kim: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
Donghwan An: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
Brian H. S. Kim: Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea

Sustainability, 2015, vol. 7, issue 12, 1-11

Abstract: Marssonina blotch in apples and pear scab are diseases that may affect apple and pear production as well as related industries significantly. The range and scale of the economic influence of such outbreaks should be clarified to ensure the sustainable growth of these industries. This study evaluates the direct and indirect economic effects of outbreaks through a partial equilibrium approach and an input–output model; direct influences are measured on the basis of reduced production, and the estimated costs are 34,926 million Korean Won (mKRW) (US$ 29.79 million) and 11,767 mKRW (US$ 10.04 million) for apples and pears, respectively. The indirect effects are determined according to changes in the quantity of apples and pears supplied to the market; these effects can induce social welfare losses. These costs are estimated to be 305,065 mKRW (US$ 259.08 million) for apples infected with Marssonina blotch, which accounts for 186,628 mKRW (US$ 158.50 million) in producer surplus and 118,437 mKRW (US$ 100.58 million) in consumer surplus and 72,693 mKRW (US$ 61.74 million) for pears infected with scab, which accounts for 44,106 mKRW (US$ 37.46 million) in producer surplus and 28,587 mKRW (US$ 24.28 million) in consumer surplus. The findings from this study can be referenced by the Korean government in designing more effective control measures toward sustainable growth of related industry.

Keywords: economic assessment; fruit diseases; indirect effect; partial equilibrium model; risk analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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