The optimal amount and allocation of sampling effort for plant health inspection
- 1 September 2009
- journal article
- Published by Oxford University Press (OUP) in European Review of Agricultural Economics
- Vol. 36 (3), 295-320
- https://doi.org/10.1093/erae/jbp030
Abstract
Plant import inspection can prevent the introduction of exotic pests and diseases, thereby averting economic losses. We explore the optimal allocation of a fixed budget, taking into account risk differentials, and the optimal-sized budget to minimise total pest costs. A partial-equilibrium market model is used to compute the economic consequences of pest invasion. An application to Dutch imports of chrysanthemum cuttings shows that the optimal allocation of a fixed inspection budget halves the cost of pest invasion compared to allocating the same budget equally over all imports. A budget increase that enables 42 per cent more inspection can reduce total societal costs by 81 per cent compared to smaller, constrained budget that ignores risk differentials.Keywords
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