Benefit-cost analysis of spruce budworm (Choristoneura fumiferana Clem.) control: Incorporating market and non-market values

http://www.sciencedirect.com/science/article/pii/S0301479711003215

Abstract: This study employs a benefit-cost analysis framework to estimate market and non-market benefits and costs of controlling future spruce budworm (Choristoneura fumiferana) outbreaks on Crown forest lands in New Brunswick, Canada. We used: (i) an advanced timber supply model to project potential timber volume saved, timber value benefits, and costs of pest control efforts; and (ii) a recent contingent valuation method analysis that evaluated non-market benefits (i.e., changes in recreation opportunities and existence values) of controlling future spruce budworm outbreaks in the Province. A total of six alternative scenarios were evaluated, including two uncontrolled future budworm outbreak severities (moderate vs. severe) and, for each severity, three control program levels (protecting 10%, 20%, or 40% of the susceptible Crown land forest area). The economic criteria used to evaluate each scenario included benefit-cost ratios and net present values. Under severe outbreak conditions, results indicated that the highest benefit-cost ratio (4.04) occurred when protecting 10% (284,000 ha) of the susceptible area, and the highest net present value ($111 M) occurred when protecting 20% (568,000 ha) of the susceptible area. Under moderate outbreak conditions, the highest benefit-cost ratio (3.24) and net present value ($58.7 M) occurred when protecting 10% (284,000 ha) of the susceptible area. Inclusion of non-market values generally increased the benefit-cost ratios and net present values of the control programs, and in some cases, led to higher levels of control being supported. Results of this study highlight the importance of including non-market values into the decision making process of forest pest management.

Highlights
► We assess the benefits and costs of controlling spruce budworm outbreaks.
► A contingent valuation method and a wood supply model are used in the analysis.
► A number of outbreak severities and control program scenarios are considered.
► Net present values are highest when protecting 10–20% of the affected land base.
► Including non-market values can help justify larger control programs.

by Wei-Yew Chang, Van A. Lantz, Chris R. Hennigar, David A. MacLean; all of Faculty of Forestry and Environmental Management, University of New Brunswick, P.O. Box 4400, Fredericton, NB, Canada E3B 5A3; Tel.: +1 506 458 7775; fax: +1 506 453 3538.
Journal of Environmental Management via Elsevier Science Direct www.ScienceDirect.com;
Volume 93, Issue 1; January, 2012; Pages 104–112

Keywords: Contingent valuation; Timber supply model; Natural disturbances; Forest pest management; Forest protection; Benefit-cost ratio; Net present value; New Brunswick

Allocating biosecurity resources between preventing, detecting, and eradicating island invasions

http://www.sciencedirect.com/science/article/pii/S0921800911003855 
Abstract: Finding efficient ways to manage the threat of invasive species helps make the most of limited resources. Different management actions reduce the impact of invasions differently: preventing invasion eliminates impacts entirely, surveillance can facilitate early detection and eradication, and removing individuals can reduce future impact. Few studies have examined the trade-off between all three facets of invasion management. Using a simple model of island invasion, we find how resources should be allocated to each action to minimise the total cost of management and impact. We use a case study of black rat (Rattus rattus) invasion on Barrow Island, Western Australia. The optimal amount to invest in each management action depends on the effectiveness of each action, and the magnitude of impact caused by different stages of invasion. If the pest is currently absent, it is more cost-effective to prevent impacts through prevention or surveillance. If the pest is already widespread, it can sometimes be cost-effective to give up rather than attempting eradication. This model of invasion can provide useful decision support by identifying the trade-offs inherent in each candidate management strategy, the thresholds that alter optimal strategies, and the parameters for which we need more information.

by Tracy M. Rout 1, Joslin L. Moore 1, Hugh P. Possingham 2, Michael A. McCarthy 1
1. Applied Environmental Decision Analysis (a Commonwealth Environment Research Facility), School of Botany, University of Melbourne, Parkville, Victoria 3010, Australia
2. Applied Environmental Decision Analysis (a Commonwealth Environment Research Facility), School of Biological Sciences, University of Queensland, St. Lucia, Queensland 4072

Australia Ecological Economics via Elsevier Science Direct www.ScienceDirect.com
Volume 71; November 15, 2011; Pages 54-62
Keywords: Decision theory; Exotic species; Introduced species; Invasion management; Quarantine; Surveillance

A cost-benefit analysis of moose harvesting in Scandinavia. A stage structured modelling approach

http://dx.doi.org/10.1016/j.reseneeco.2011.01.001

Abstract:: A cost-benefit analysis of moose (Alces alces) harvesting in Scandinavia is presented within the framework of an age structured model with four categories of animals (calves, yearlings, adult females, and adult males). The paper aims to demonstrate the economic content of such a wildlife model and how this content may change under shifting economic and ecological conditions. Two different harvesting regimes are explored: landowner profit maximization, where the combined benefit of harvesting value and browsing damage is taken into account, and overall management, where the costs and damages of moose-vehicle collisions are taken into account as well. An empirical analysis of the Norwegian moose stock indicates that the present stock level is far too high compared with the overall management scenario, and that the composition of the harvest could be improved.

Research highlights:

► A cost-benefit analysis of moose (Alces alces) harvesting in Scandinavia is analysed.
► Four categories of animals are considered: calves, yearlings, adult females and adult males.
► It is shown that the per animal values are instrumental in determining the optimal harvesting composition.

 

by Jon Olaf Olaussen^a, Anders Skonhoft^b,  

a	Trondheim Business School, Jonsvannsveien 82, N-7050 Trondheim, Norway

b	Department of Economics, Norwegian University of Science and Technology, N-7491 Dragvoll-Trondheim, Norway

Resource and Energy Economics via Elsevier Science Direct www.ScienceDirect.com
Volume 33, Issue 3, September 2011, Pages 589-611
Keywords: Moose hunting; Cost-benefit analysis; Stage model