Wednesday, June 15, 2016

Predicting the total economic impacts of invasive species: The case of B. rubostriata(red streaked leafhopper)

 • We predict the invasion of B. rubostriata (red-streaked leafhopper) in sugarcane growing areas in Louisiana.
• Using IMPLAN input-output model, we estimate the economic impacts of B. rubostriata at the county level and the state level.
• The total economic impacts estimated include direct impacts, indirect impacts and induced impact.
• We also estimate the effects on employment and taxes due to the invasion and the reduced sugarcane production.

This paper predicts the total economic impacts of an impending invasion of Balclutha rubostriata (henceforth B. rubostriata) in the sugarcane-producing regions of Louisiana. B. rubostriata is a non-native species that feeds on sugarcane and can be a carrier of sugarcane white leaf phytoplasma, a disease capable of causing up to 100% crop loss. The total economic impacts considered in the prediction include direct, indirect and induced economic impacts. These estimates are essential for policy-makers to formulate appropriate responses. Results show that the cumulative total impacts could be as high as $5.4 million from B. rubostriata only or $71.6 million from B. rubostriata and the phytoplasma after 5 years. State and local governments could lose a cumulative total of $438,450 in tax while federal revenues would be reduced by $4 million with B. rubostriata and phytoplasma after 5 years. Cumulative employment effects range from 184 lost jobs with just B. rubostriata to 2460 lost jobs with B. rubostriata and phytoplasma by year 5, about one-tenth percentage point increase in Louisiana's unemployment rate at current employment levels.
by Lirong Liu 1 and Brian Piper 21. The Texas A&M University - Commerce, Department of Economics and Finance, Commerce, TX 75429, United States
2. Research & Planning Consultants, L.P., Austin, TX 78752, United States
Ecological Economics via Elsevier Science Direct
Volume 128, August 2016, Pages 139–146
Keywords: Total economic impacts; Direct impact; Indirect impact; Induced impact; Invasive species; Input–output model; IMPLAN

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