Market-based instruments for the optimal control of invasive insect species

B. Tabaci in Arizona

Timothy J. Richards, Peter C Ellsworth, Russell E Tronstad, Steve Naranjo

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Invasive insect species represent perhaps one of the most significant potential sources of economic risk to U.S. agricultural production. Private control of invasive insect species is likely to be insufficient due to negative externality and weaker-link public good problems. In this study, we compare a system of Pigouvian taxes with tradable permits for invasive species control. While the emissions control literature shows that taxes are preferred to permits under cost uncertainty, invasive-species control involves correlated cost and benefit uncertainty. Hence, we expect a quantity-based system to be preferred. Monte Carlo simulations of optimal steady-state outcomes confirm our expectations.

Original languageEnglish (US)
Pages (from-to)349-367
Number of pages19
JournalJournal of Agricultural and Resource Economics
Volume35
Issue number3
StatePublished - Dec 2010

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taxes
invasive species
uncertainty
markets
insects
agriculture
economics
Optimal control
Invasive species
Market-based instruments

Keywords

  • Externalities
  • Invasive species
  • Optimal control
  • Permits
  • Spatial-temporal model
  • Taxes

ASJC Scopus subject areas

  • Economics and Econometrics
  • Agronomy and Crop Science
  • Animal Science and Zoology

Cite this

Market-based instruments for the optimal control of invasive insect species : B. Tabaci in Arizona. / Richards, Timothy J.; Ellsworth, Peter C; Tronstad, Russell E; Naranjo, Steve.

In: Journal of Agricultural and Resource Economics, Vol. 35, No. 3, 12.2010, p. 349-367.

Research output: Contribution to journalArticle

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