Source: ARIZONA STATE UNIVERSITY EAST submitted to
ASIAN CITRUS PSYLLID IN CALIFORNIA: AN ECONOMIC ANALYSIS OF EFFICIENT MANAGEMENT AND CONTROL STRATEGIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
0222439
Grant No.
2010-51181-21246
Project No.
ARZW-2010-01182
Proposal No.
2010-01182
Multistate No.
(N/A)
Program Code
SCRI
Project Start Date
Sep 1, 2010
Project End Date
Aug 31, 2013
Grant Year
2010
Project Director
Richards, T. J.
Recipient Organization
ARIZONA STATE UNIVERSITY EAST
7001 E. WILLIAMS FIELD ROAD
MESA,AZ 85212
Performing Department
Morrison School of Agribusiness and Resource Management
Non Technical Summary
Asian Citrus Psyllid (ACP, Diaphorina citri Kuwayama) is an invasive insect species that has been present in Florida since 1998, but was not sighted in California (San Diego County) until August 2008. ACP damages citrus by feeding on the leaf and depositing a large amount of honeydew, as well as vectoring the bacterium that causes Citrus Greening Disease (CGD, huanglongbing). If left unchecked, the California Department of Food and Agriculture (CDFA) estimates potential damage at $224.0 million annually. Given the financial constraints facing CDFA, the decision of whether to commit resources to: (1) excluding pests from entering, (2) allowing entry, but eradicating upon discovery, or (3) allowing entry, and controlling dispersion through existing techniques, is a critically important problem. This study proposes to develop a spatio-temporal optimal control modeling framework to determine the optimal allocation of resources to these three activities, taking into account: (1) whether it will be possible to incentivize the grower community to mount a cooperative management effort on their own, and (2) the market impacts of an uncontrolled ACP infestation. We plan to communicate the practical application of our results to CDFA officials through seminars and industry stakeholders (growers and processors) through industry meetings organized by the California Citrus Mutual (CCM).
Animal Health Component
(N/A)
Research Effort Categories
Basic
40%
Applied
60%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
2160999301020%
2163110301020%
6030999301020%
6050999301020%
6053110301020%
Goals / Objectives
To determine the most economically efficient way to minimize the risk faced by the California citrus industry to ACP infestation and, thereby, exposure to citrus greening disease (CGD). The operational objectives necessary to achieve this long term objective are to: The long-term objective of the proposed research is to determine the most economically efficient way to minimize the risk faced by the California citrus industry to ACP infestation and, thereby, exposure to citrus greening disease (CGD). The operational objectives necessary to achieve this long term objective are to: 1. Develop an economic-optimization framework that incorporates the spatial-temporal movement of invasive insects and dynamic optimization methods that can be used to optimally allocate resources among exclusionary, eradication and control efforts. The framework will be designed on multiple levels using analytical analysis for intuition and numerical methods for solving the specific policy problem under study. 2. Estimate the relationship between ACP infestation levels and citrus quality, citrus quantity, control costs and reproduction rates in order to parameterize the objective function of the proposed optimal control model. 3. Use the dynamic optimization model to analyze alternative first-best ACP management control strategies, or those that are optimal from the perspective of a "central planner," here defined as the combined efforts of the US Department of Agriculture (USDA) and CDFA. If the dynamic optimization model suggests that control should be part of an optimal management strategy, we will recommend optimal resource levels to commit to existing biological, chemical and IPM programs. 4. Use the dynamic optimization model to analyze alternative second-best policy instruments, or those that are optimal under the assumption that individual growers are to be held responsible for controlling the spread of ACP. 5. Design and implement an extension program that will effectively communicate our results to citrus growers, processors, government agents and private landowners in California, as all stakeholder groups are essential to our concept of a community-based management system that will minimize cost and the public good nature of insect control. The primary outputs of our research will be to recommend an optimal allocation of resources dedicated to either: (1) exclusion before arrival, (2) eradication after arrival, or (3) control after arrival. The menu of expected outcomes from this research include: (1) a description of economically-optimal ACP management strategies, including the method, timing and intensity of exclusion or control, (2) estimates of the likely divergence between population outcomes if firms are left to make decisions on their own relative to a socially-optimal outcome, or one that balances the marginal costs and benefits of control from an social perspective, (3) new methods of modeling the spatio-temporal dynamics of the spread of insect-invasive species, and (4) the relatively desirability of incentivizing individual growers through tax programs or tradable permits to achieve socially optimal levels of insect control.
Project Methods
The proposed research program consists of five stages. Stage 1 involves developing and specifying a stochastic optimal control model in which the decision maker chooses the amount of resources to commit to each of three types of management activity: (1) pre-arrival control, or exclusion, that reduces the probability of discovering an new invasive insect, (2) post-arrival exclusion or eradication activities that reduce the probability of subsequent discoveries and (3) on-going control activities that reduce the growth rate of a population once established. The level of these three activities will be chosen to maximize the present value of social economic surplus over cost (equivalent to minimizing all economic costs, including damage and control). In stage 2 we will parameterize the objective function and state equations that comprise the optimal control model, using spatio-temporal data gathered by entomologists at CDFA (CDFA, 2009). During stage 3, we will generate numerical solutions to the optimal control model that will indicate the optimal level of each management activity (exclusion, eradication, control) and timing (the threshold population level) of control activities that maximize the present value of economic surplus. In stage 4 we will conduct numerical simulations designed to demonstrate how optimal spatio-temporal growth and dispersion patterns change under alternative parametric and policy scenarios (comparative dynamic analysis). In stage 5, we use the policy simulation results to recommend policy measures that are likely to be both effective and efficient in managing ACP numbers at economically sustainable levels.

Progress 09/01/10 to 08/31/13

Outputs
Target Audience: California citrus growers; CDFA budget officials. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Report has been sent to CDFA and CCM partners. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Goals have been met.

Publications

  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Eli Fenichel, David Shanafelt and Timothy J. Richards. Property Rights and Invasive Species Management. Environmental and Resource Economics.
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Timothy J. Richards, David Shanafelt and Eli Fenichel. Foreclosures and the Spread of Invasive Species. American Journal of Agricultural Economics


Progress 09/01/11 to 08/31/12

Outputs
OUTPUTS: Pursuant to the objectives of the grant, we have produced a number of modeling outputs. First, we have constructed two different models of optimal spatial-dynamic control and prevention that address two different aspects of the proposal objectives. In the first model, we study the effect of property rights assignment on the incentive for private control of Asian Citrus Psyllid (ACP) spread. This is important because a market-based solution will likely be the only option given the pervasive nature of ACP, and limited public resources available for the spread. In the second model, we focus on the prevention versus control problem. In this model, we find that it is never optimal to eradicate ACP, but rather manage its spread once it has arrived (assuming the arrival of citrus greening disease, which has indeed occurred as of March 2012). Second, we have used the CDFA ACP spread data to parameterize a model of spatial-temporal movement. We estimate the growth rate, the radial spread rate and the impact of several environmantal factors on the rate of ACP spread and growth. Third, we have desigend an agent-based model (ABM) that is intended to generate data on how ACP can be expected to spread under alternative assumptions regarding the biological and economic conditions in the citrus growing regions of California. PARTICIPANTS: California Department of Food and Agriculture California Citrus Mutual TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
We have a number of important findings that emerge from the outputs described above. First, our theoretical models show that it is never optimal to completely eradicate ACP, despite the potential damage to the citrus industry, because it is simply too costly to find and kill all of the insects. Second, we find that proper assignment of property rights over insect-free orchards to citrus growers in California would be sufficient to generate a community-based solution to invasive control. That is, because the control of a fugitive species is a weaker-link public good, growers must be presented with incentives to act in concert. Third, our empirical work shows that ACP spread at only a moderate rate due to biological factors, but human-aided movement is largely responsible for long-distance spread. In fact, ACP spread has been greatly aided by the foreclosure crisis in Southern California as untended houses provide perfect host environments for invasive species. Fourth, with the help of the ABM data, we find that a stratified diffusion model of insect dispersion provides a better fit to the data than competing alternatives.

Publications

  • Richards, T. J.; E. Fenichel and D. Shanafelt. 2012. "Spread and Dispersion of ACP in California: the Effect of Foreclosures." revise and resubmit at the American Journal of Agricultural Economics.
  • Fenichel, E.; D. Shanafelt and T. J. Richards. 2011. "Optimal Spraying Behavior and Spatial Diffusion of ACP." submitted to Environmental and Resource Economics.


Progress 09/01/10 to 08/31/11

Outputs
OUTPUTS: In summary, the overall objective of the proposed research is to determine the most economically efficient way to minimize the risk faced by the California citrus industry to ACP infestation and, thereby, exposure to Citrus Greening Disease. To achieve this objective, we proposed to: 1. develop new methods of stochastic optimal control of an invasive insect species that take into account the idiosyncracies of ACP propagation and spread; 2. incorporate spatial-temporal dynamics into a stochastic optimal control framework; 3. use new sources of wide-area (multi-county), geographical information system (GIS)-based insect population data on ACP sightings to parameterize the state equations of the optimal control model; 4. estimate the relationship between ACP infestation levels and citrus quality, citrus quantity, control costs and reproduction rates; 5. determine the least-cost method of control from among existing biological, chemical and IPM techniques; 6. design and evaluate alternative market-based regulatory regimes to achieve the optimal solution without command-and-control policies; 7. simulate privately and socially-optimal control strategies; 8. design and implement an extension program that will effectively communicate our results to citrus growers in California. As of September, 2011, we have substantially completed the first 4 of these goals in two different ways: (1) from a standard optimal control perspective, and (2) using an agent-based model in which individual growers are treated as independent, willful decision makers. We are continuing to refine both the theoretical and empirical frameworks in order to best incorporate the policy simulations and solutions in objectives 5 - 8. In achieving objective 3, we have also uncovered a surprising fact - that the spread of insects from one agricultural area to another is hastened by the existence of unmonitored citrus on foreclosed residential properties. The implications of this finding are significant, both in terms of the specific problem addressed here and in the broader problem of determining the economic costs of the foreclosure crisis in California. PARTICIPANTS: 1. Kevin Hoffman, Senior Entomologist, California Dept of Food and Ag 2. Richard Dunn, Senior Researcher, Citrus Research Board 3. Joel Nelson, CEO, California Citrus Mutual 4. Nicholas Olsen, Researcher, Grimm Lab, Arizona State University We have assembled a highly effective team of contributors who have real economic stakes in controlling ACP in California and Arizona. TARGET AUDIENCES: Our target audience remains the California citrus grower, but our focus has broadened from commercial growers to commercial and residential growers (ie. nearly 1 in 3 homeowners in Los Angeles and San Diego counties) due to the importance of residential citrus in the spread of ACP. PROJECT MODIFICATIONS: None.

Impacts
We are at the mid-point of our two-year research program. Therefore, our results have yet to have a material impact on the way ACP are managed in the state of California. We anticipate, however, that the results of our research will have a significant impact on the way ACP are monitored and controlled, and they way in which the California Department of Food and Agriculture (CDFA) monitors ACP movement in non-agricultural areas.

Publications

  • No publications reported this period