The Economics of Zoonotic Diseases: An Application to Avian Flu
This chapter reviews the economics of Avian Influenza and other zoonotic diseases and describes how externalities and market failures lead to suboptimal provision of disease prevention and control. It develops a prototype model of farm behavior that merges epidemiology and economics to provide a framework for analyzing how private incentives lead to a divergence between farmer optimization and social-welfare maximization. Conditions for optimal policy intervention are derived in an application to Avian Influenza and the distribution of economic benefits is derived. Policies for disease prevention and control are considered in the context of the economic model.
KeywordsWest Nile Virus Avian Influenza Marginal Benefit Highly Pathogenic Avian Influenza Zoonotic Disease
- CDC. Key facts about avian influenza (bird flu) and avian influenza A (H5N1) virus. Washington (DC); 2008. Accessed online at http://www.cdc.gov/flu/avian/gen-info/facts.htm on August 20, 2008.
- Chichilinsky, G. “The Economics of Global Environmental Risks,” In The International Yearbook of Environmental and Resource Economics 1998/9, eds. T. Tietenberg and H. Folmer, Cheltenham: Edward Elgar; 1998.Google Scholar
- Connolly, C. “CDC Announces Plan to Ration Flu Vaccine.” Washington Post: 2004 November 10; pA6.Google Scholar
- Jensen, R. “Economic Policy for Invasive Species.” Working Paper, University of Notre Dame; 2002. Accessed at: http://www.nd.edu/∼rjensen1/workingpapers/InvasiveSpecies.pdf.
- Lichtenberg, E, and D Zilberman. “Efficient Regulation of Environmental Health Risks.” Quarterly Journal of Economics CIII (1988): 167–178.Google Scholar
- McKibbin, WJ and AA Sidorenko. “Global Macroeconomic Consequences of Pandemic Influenza.” Sydney, Australia: Lowry Institute for International Policy; 2006.Google Scholar
- Perrings, C, EB Barbier, M Williamson, D Delfino, S Dalmazzone, J Shogren, P Simmons, and A Watkinson. “Biological Invasion Risks and the Public Good: An Economic Perspective.” Conservation Ecology 6(2002): 1.Google Scholar
- Sandler, T. Global Challenges. Cambridge University Press, Cambridge, UK; 1997.Google Scholar
- Sproul, TW, D Zilberman, and D Roland-Holst. “The Economics of Managing Animal Disease.” UC Berkeley Department of agricultural and Resource Economics Working Paper 2007.Google Scholar
- Stegeman, J. A. and A. Bouma. “Epidemiology and Control of Avian Influenza.” In Proceedings of the 11th International Conference of the Association of Institutions for Tropical Veterinary Medicine and 16th Veterinary Association Malaysia Congress, 141–43. Patalang Jaya, August 2006.Google Scholar
- World Health Organization. “Cumulative Number of Confirmed Human Cases of Avian Influenza A/(H5N1) Reported to WHO.” Washington (DC): Accessed online August 20 2008.Google Scholar
- Wilson, R. and EA Crouch. “Risk Assessment and Comparisons: An Introduction.” Science 236(1987): 267–270.Google Scholar