Optimal Biosecurity Policywith Heterogeneous Farmers

Abdel Fawaz Osseni, Alexandre Gohin () and Arnaud Rault ()
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Abdel Fawaz Osseni: SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Alexandre Gohin: SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Arnaud Rault: BIOEPAR - Biologie, Epidémiologie et analyse de risque en Santé Animale - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: Infectious animal diseases raise serious challenges for both public health and the livestocksector. We develop an original principal-multiple agent model for preventing these diseases thatexplicitly considers the heterogeneity of risk-averse farmers in addition to production externalitiesandex anteinformational asymmetries. Our results confirm that failing to consider farmers'heterogeneity generates Pareto-inefficient solutions. When using individual-based instruments,the government should cope with heterogeneity by increasing guaranteed payments and reducingaverage payments. However, when population-based instruments are the only available policytools, increasing average payments is better for reducing moral hazard issues.

Keywords: Incentive program; Individual-based instruments; Population-based instruments; Public good; Public policy (search for similar items in EconPapers)
Date: 2022-05
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03965210v1
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Published in Journal of Agricultural and Resource Economics, 2022, 47 (2), pp.355-372. ⟨10.22004/ag.econ.311029⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03965210

DOI: 10.22004/ag.econ.311029

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