Budgeting and portfolio allocation for biosecurity measures

Autor: Kompas, Tom, Chu, Long, Ha, Pham Van, Spring, Daniel
Jazyk: angličtina
Rok vydání: 2019
Předmět:
Research and Development/Tech Change/Emerging Technologies
This paper presents a practical model for optimally allocating a budget across different biosecurity threats and measures (e.g. prevention or border quarantine
active surveillance for early detection
and containment and eradication measures) to ensure the highest rate of return. Our portfolio model differs from the common principle
which ranks alternative projects by their benefit cost ratios and picks the one that generates the highest average benefit cost ratio. The model we propose
instead
aims to allocate shares of the budget to the species where it is most cost-effective
and consequently determine the optimal scale of the control program for each threat under varying budget constraints. The cost-effectiveness of each block of budget spent on a threat is determined by minimising its expected total cost
including the damages it inflicts
and the control expenditures incurred in preventing or mitigating damages. As an illustration
the model is applied to the optimal allocation of a budget across four of Australia’s most dangerous pests and diseases: red imported fire ants
foot-andmouth disease
papaya fruit fly
and orange hawkweed. The model can readily be
extended to consider more species and activities
and more complex settings including cases where detailed spatial and temporal information needs to be considered
DOI: 10.22004/ag.econ.333789
Databáze: OpenAIRE
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