Environmental and Resource Economics

, Volume 50, Issue 4, pp 605–627 | Cite as

Stepping Stones for Biological Invasion: A Bioeconomic Model of Transferable Risk

  • Travis Warziniack
  • David Finnoff
  • Jonathan Bossenbroek
  • Jason F. Shogren
  • David Lodge


We investigate three sources of bias in valuation methods for ecosystem risk: failure to consider substitution possibilities between goods, failure to consider nonseparability of ecosystem services with market goods, and failure to consider substitution possibilities between ecosystems. The first two biases are known in the literature, and we offer insight on the size of the bias for a specific example. Our work on spatially transferable risk is novel. We develop the concept and show how it may undermine typical invasion prevention strategies. We find three key results. First, partial equilibrium estimates of welfare loss are significantly overestimated relative to general equilibrium estimates. If ecosystem services and market goods are substitutes the partial equilibrium bias is greater than if they are compliments. Second, well-intended policies do not necessarily reduce overall risk; risk reduction actions can transfer risk to another time or location, or both, which may increase total risk. Third, policies of quotas and inspections have to be extreme to improve welfare, with inspections having advantages over quotas.


Bioeconomic Invasive species Risk Transferable risk Welfare 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Supplementary material

10640_2011_9485_MOESM1_ESM.doc (307 kb)
ESM 1 (DOC 307 kb)


  1. 100th Meridian Initiative (2007) Western quagga mussels: background information, produced for outreach by United States Fish and Wildlife Service, 25 March 2007Google Scholar
  2. American Sportfishing Association (2008) Sportfishing in America: an economic engine and conservation powerhouseGoogle Scholar
  3. Armour AF, Tsou JL, Wiancko PM (1993) Zebra mussels: the industrial impact. In: Proceedings of the 3rd international zebra mussel conference, TorontoGoogle Scholar
  4. Bennear LS, Stavins RN, Wagner AF (2005) Using revealed preferences to infer environmental benefits: evidence from recraetional fishing licenses. J Regul Econ 28(2): 157–179CrossRefGoogle Scholar
  5. Bird P (1987) The transferability and depletability of externalities. J Environ Econ Manag 14(1): 54–57CrossRefGoogle Scholar
  6. Bossenbroek JM, Johnson LE, Peters B, Lodge DM (2007) Forecasting the expansion of zebra mussels in the United States. Conserv Biol 21: 800–810CrossRefGoogle Scholar
  7. Bossenbroek JM, Finnoff D, Shogren JF, Warziniack TW (2009) Advances in ecological and economical analysis of invasive species: dreissenid mussels as a case study. In: Keller RP, Lodge DM, Lewis MA, Shogren JF (eds) Bioeconomics of invasive species: integrating ecology, economics and management. Oxford University Press, OxfordGoogle Scholar
  8. Carbone JC, Smith VK (2008) Evaluating policy interventions with general equilibrium externalities. J Public Econ 92: 1254–1274CrossRefGoogle Scholar
  9. Connelly NA, O’Neil CR, Knuth BA, Brown TL (2007) Economic impacts of zebra mussels on drinking water treatment and electric power generation facilities. Environ Manag 40: 105–112CrossRefGoogle Scholar
  10. Costello C, Springborn M, McAusland C, Solow A (2007) Unintended biological invasion: does risk vary by trading partner?. J Environ Econ Manag 54(3): 262–276CrossRefGoogle Scholar
  11. Crocker TD, Tschirhart J (1992) Ecosystems, externalities, and economics. Environ Resour Econ 2: 551–567Google Scholar
  12. Deardorrf AV (2005) How robust is comparative advantage?. Rev Int Econ 13(5): 1004–1016CrossRefGoogle Scholar
  13. De Melo J, Tarr D (1992) A general equilibrium analysis of US foreign trade and policy. MIT Press, CambridgeGoogle Scholar
  14. Deng Y (1996) Present and expected economic costs of zebra mussel damages to water users with Great Lakes water intakes. PhD Dissertation, Ohio State UniversityGoogle Scholar
  15. Dervis K, De Melo J, Robinson S (1982) General equilibrium models for development policy. Cambridge University PressGoogle Scholar
  16. Drake JM, Bossenbroek JM (2004) The potential distribution of zebra mussels (Dreissena polymorpha) in the USA. Bioscience 54: 931–941CrossRefGoogle Scholar
  17. Finnoff D, Tschirhart J (2007) Linking dynamic economic and ecological general equilibrium models. Resour Energy Econ 30: 91–114CrossRefGoogle Scholar
  18. Hertel TW, Tsigas ME (1997) Structure of GTAP. In: Hertel TW (eds) Global trade analysis: modeling and applications. Cambridge University Press, CambridgeGoogle Scholar
  19. Horvath TG, Lamberti GA, Lodge DM, Perry WL (1996) Zebra mussel dispersal in lake-stream systems: source-sink dynamics?. J N Am Benthol Soc 15: 564–575CrossRefGoogle Scholar
  20. Jensen J, Rasmussen TN (2000) Allocation of CO2 emission permits: a general equilibrium analysis of policy instruments. J Environ Econ Manag 40: 111–136CrossRefGoogle Scholar
  21. Johnson LE, Bossenbroek JM, Kraft CE (2006) Patterns and pathways in the post-establishment spread of non-indigenous aquatic species: the slowing invasion of North American inland lakes by the zebra mussel. Biol Invas 8: 475–489CrossRefGoogle Scholar
  22. Kaval P, Loomis J (2003) Updated outdoor recreation use values with emphasis on National Park recreation. Report prepared for National Park Service, Fort CollinsGoogle Scholar
  23. Kokoski MF, Smith VK (1987) A general equilibrium analysis of partial-equilibrium welfare measures: the case of climate change. Am Econ Rev 77(3): 331–341Google Scholar
  24. Leung B, Lodge DM, Finnoff D, Shogren JF, Lewis MA, Lambertini G (2002) An ounce of prevention or a pound of cure: bioeconomic risk analysis of invasive species. Proc R Soc 269: 2407–2413CrossRefGoogle Scholar
  25. Minessota IMPLAN Group (MIG) (2009)Google Scholar
  26. Nalepa T (1998) Dramatic changes in benthic macroinvertebrate populations in Southern Lake Michigan, ANS Update, 4(3). Great Lakes Panel on Aquatic Nuisance Species and Great Lakes Commission, Ann ArborGoogle Scholar
  27. Ohio Sea Grant (1996) Sea grant zebra mussel update: A 1995 report of research (part 1 of 2)Google Scholar
  28. O’Neill CR (1997) Economic impact of zebra mussels—results from the 1995 National Zebra Mussel Information Clearinghouse Study. Great Lakes Res Rev 3(1): 35–44Google Scholar
  29. O’Neill CR (2006) Economic impact of zebra mussels—results from the 1995 National Zebra Mussel Information Clearinghouse Study (2006 Revision and Addendum provided by author). National Aquatic Nuisances Species Clearinghouse and New York Sea GrantGoogle Scholar
  30. Phillips S, Darland T, Sytsma M (2005) Potential economic impacts of zebra mussels on the hydropower facilities in the Columbia River Basin. Pacific States Marine Fisheries Commission, PortlandGoogle Scholar
  31. Pimental D, Lach L, Zuniga R, Morrison D (2000) Environmental and economic costs of nonindigenous species in the United States. Bioscience 50: 53–65CrossRefGoogle Scholar
  32. Pimental D, Zuniga R, Morrison D (2005) Update on the environmental and economic costs associated with alien-invasive species in the United States. Ecol Econ 52: 273–288CrossRefGoogle Scholar
  33. Ricciardi A, Neves RJ, Rasmussen JB (1998) Impending extentinctions of North American freshwater mussels (Unionoida) following zebra mussel (Dreissena polymorpha) invasion. J Anim Ecol 67: 613–619CrossRefGoogle Scholar
  34. Rothlisberger JD, Lodge DM, Cooke RM, Finnoff DC (2009) Future declines of the binational Laurentian Great Lakes fisheries: recognizing the importance of environmental and cultural change. Front Ecol EnvironGoogle Scholar
  35. Rutherford TF (2009) Constant elasticity of substitution preferences: utility, demand, indirect utility and expenditure functions. Unpublished notes, ETH Zürich, 2 Nov 2009Google Scholar
  36. Shogren JF (2000) The economics of biological invasions, chapter risk reduction strategies against the ‘explosive invader’. Edward Elgar PublishingGoogle Scholar
  37. Shogren JF, Crocker TD (1991) Cooperative and noncooperative protection against transferable and filterable externalities. Environ Resour Econ 1: 195–214CrossRefGoogle Scholar
  38. Shoven JB, Whalley J (1992) Applying general equilibrium. Cambridge University Press, CambridgeGoogle Scholar
  39. Shoven JB, Whalley J (1984) Applied general-equilibrium models of taxation and international trade: an introduction and survey. J. Econ Lit 1007–1051Google Scholar
  40. Strayer DL (1991) Projected distributions of the zebra mussel, Dreissena polymorpha, in North America. Can J Fish Aquat Sci 48: 1389–1395CrossRefGoogle Scholar
  41. Strayer DL, Hattala KA, Kahnle AW (2004) Effects of an invasive bivalve (Dreissena polymorpha) on fish in the Hudson River estuary. Can J Fish Aquat Sci 61: 924–941CrossRefGoogle Scholar
  42. United States Environmental Protection Agency (USEPA) (2006) 2006–2011 EPA strategic planGoogle Scholar
  43. United States Geological Survey (USGS) (2008) Zebra and quagga mussel sighting distribution. Map produced by US Geological Survey, Gainesville, 25 NovGoogle Scholar
  44. US Department of Agriculture (USDA) (2002) Census of agricultureGoogle Scholar
  45. Vilaplana JV, Hushack LJ (1994) Recreation and the zebra mussel in Lake Erie, Ohio. Technical Summary No. OHSU-TS-023, Ohio Sea Grant Program, ColumbusGoogle Scholar
  46. Warziniack TW (2008) Trade-related externalities and spatial public goods in computable general equilibrium, PhD dissertation, University of WyomingGoogle Scholar
  47. Water Science and Technology Board (WSTB): (2004) Managing the Columbia River: instream flows, water withdrawals, and Salmon survival. The National Academy Press, WashingtonGoogle Scholar
  48. Western Regional Panel on Aquatic Nusiance Species (2010) Quagga-zebra mussel action plan for western US waters. Aquatic Nusiance Species Task Force. http://anstaskforce.gov/QZAP/QZAP_FINAL_Feb2010.pdf
  49. Whalley J (1975) How Reliable is Partial Equilibrium Analysis?. Rev Econ Stat 57(3): 299–310CrossRefGoogle Scholar
  50. Whittier TR, Ringold PL, Herlihy AT, Pierson SM (2008) A calcium-based invasion risk assessment for zebra and quagga mussels (Dreissena spp.). Front Ecol Environ 6(4): 180–184CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  • Travis Warziniack
    • 1
  • David Finnoff
    • 2
  • Jonathan Bossenbroek
    • 3
  • Jason F. Shogren
    • 2
  • David Lodge
    • 4
  1. 1.Alfred Weber InstituteUniversity of HeidelbergHeidelbergGermany
  2. 2.Department of Economics and FinanceUniversity of WyomingLaramieUSA
  3. 3.University of ToledoOregonUSA
  4. 4.Center for Aquatic ConservationUniversity of Notre DameNotre DameUSA

Personalised recommendations