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Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements

Fraser, Robert (2016) Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements. Environmental and Resource Economics, . pp. 1-13. ISSN 0924-6460. E-ISSN 1573-1502. (doi:10.1007/s10640-016-0102-7) (KAR id:60678)

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https://doi.org/10.1007/s10640-016-0102-7

Abstract

This paper examines the issue of compensation payments for farmers affected by an animal disease outbreak. Recent literature has questioned the scope for the widely used “single mechanism” of compensation payments to incentivise farmers both to undertake costly on-farm biosecurity and to comply with disease reporting requirements. This paper develops a simple theoretical model of the farmer’s decision environment in this situation and

uses a numerical analysis to illustrate both the potential for a range of levels of compensation payments to achieve this dual incentivising, and how this range is affected by changes in the parameter values of the farmer’s decision environment. The findings of the paper are used to suggest a range of policy implications in relation to compensation payments in the UK.

Item Type: Article
DOI/Identification number: 10.1007/s10640-016-0102-7
Uncontrolled keywords: Compensation payments · Animal disease · Incentivising farmers · On-farm biosecurity · Disease reporting requirements
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Sarah Saines
Date Deposited: 03 Mar 2017 10:50 UTC
Last Modified: 29 May 2019 18:46 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/60678 (The current URI for this page, for reference purposes)
Fraser, Robert: https://orcid.org/0000-0003-3444-581X
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