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Private eradication of mobile public bads

Author

Listed:
  • Christopher Costello

    (Bren School of Environmental Science & Management - UC Santa Barbara - University of California [Santa Barbara] - UC - University of California)

  • Nicolas Querou

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, CNRS - Centre National de la Recherche Scientifique)

  • Agnès Tomini

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract
We consider analytically the non-cooperative behavior of many private property owners who each controls the stock of a public bad such as an invasive weed species, infectious disease, fire, or agricultural pest. The stock of the public bad can grow and disperse across a spatial domain of arbitrary size. In this setting, we characterize the conditions under which private property owners will control or eradicate, and determine how this decision depends on property-specific environmental features and on the behavior of other landowners. We show that high mobility or lower control by others result in lower private control. But when the marginal dynamic cost of the bad is sufficiently large, we find that complete eradication may be privately optimal (despite the lack of consideration of others' welfare) – in these cases, eradication arises in the non-cooperative game and is also socially optimal so there is, in effect, no externality. Finally, when property harboring the bad is not owned, or is owned in common, we derive the side payments required to efficiently control the mobile public bad.

Suggested Citation

  • Christopher Costello & Nicolas Querou & Agnès Tomini, 2017. "Private eradication of mobile public bads," Post-Print hal-01594268, HAL.
    • Handle: RePEc:hal:journl:hal-01594268
    DOI: 10.1016/j.euroecorev.2017.02.005
    Note: View the original document on HAL open archive server: https://hal.science/hal-01594268
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    3. Atallah, Shadi S. & Huang, Ju-Chin & Leahy, Jessica & Bennett, Karen, 2020. "Preference Heterogeneity and Neighborhood Effect in Invasive Species Control: The Case of Glossy Buckthorn in New Hampshire and Maine Forests," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304623, Agricultural and Applied Economics Association.
    4. Stefano Ramelli & Alexander F Wagner, 2020. "Feverish Stock Price Reactions to COVID-19," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 9(3), pages 622-655.
    5. Wang, Haoluan, 2021. "Flood Your Neighbors: Spillover Effects of Levee Building," 95th Annual Conference, March 29-30, 2021, Warwick, UK (Hybrid) 311091, Agricultural Economics Society - AES.
    6. Francois Bareille & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2021. "Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 323-356, June.
    7. Cieslik, Katarzyna & Cecchi, Francesco & Assefa Damtew, Elias & Tafesse, Shiferaw & Struik, Paul C. & Lemaga, Berga & Leeuwis, Cees, 2021. "The role of ICT in collective management of public bads: The case of potato late blight in Ethiopia," World Development, Elsevier, vol. 140(C).
    8. Abby ShalekBriski & B. Wade Brorsen & Jon T. Biermacher, 2021. "Institutional Solutions for the Economic Problem of Feral Hogs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 970-984, September.
    9. Bareille, Francois & Boussard, Hugues & Thenail, Claudine, 2020. "Productive ecosystem services and collective management: Lessons from a realistic landscape model," Ecological Economics, Elsevier, vol. 169(C).
    10. Missirian, Anouch, 2024. "Yes, in your backyard: Forced technological adoption and spatial externalities," TSE Working Papers 24-1545, Toulouse School of Economics (TSE).

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    More about this item

    Keywords

    externality; espèce invasive; externalité; éradication;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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