Who gains, who loses? Welfare effects of classical swine fever epidemics in the Netherlands

Abstract

A sectoral market model and a stochastic epidemiological model were used to simulate the effects of classical swine fever (CSF) epidemics in the Netherlands in 1997–1998. Compulsory EU control measures were implemented. Welfare changes of Dutch stakeholders, as well as government costs, were calculated. In a medium‐sized epidemic without export restrictions, pig producers' surplus increased by Euro 502 million, but producers within quarantine areas lost. Consumer surplus fell by Euro 552 million. With a ban on live pig exports, pig producers collectively lost whereas consumers gained or experienced only a small loss. Government costs were lower when exports were banned, although net welfare losses were higher. Net welfare losses increased more than proportionately with epidemic size.