Fundamental economic irreversibilities influence policies for enhancing international forest phytosanitary security

  • Authors: Holmes, Thomas P.; Allen, Will; G. Haight, Robert; Keskitalo, E. Carina H.; Marzano, Mariella; Pettersson, Maria; P. Quine, Christopher; Langer, E. R.
  • Publication Year: 2017
  • Publication Series: Scientific Journal (JRNL)
  • Source: Current Forestry Reports
  • DOI: 10.1007/s40725-017-0065-0

Abstract

National and international efforts to manage forest biosecurity create tension between opposing sources of ecological and economic irreversibility. Phytosanitary policies designed to protect national borders from biological invasions incur sunk costs deriving from economic and political irreversibilities that incentivizes wait-and-see decision-making. However, the potential for irreversible ecological and economic damages resulting from failed phytosanitary policies argues for precautionary measures, creating sunk benefits while increasing the risk of over-investment in phytosanitary security. Here, we describe the inherent tension between these sources of irreversibility in economic terms, relate these forces to type I and type II errors, and use this framework to review national and international efforts to protect forests from biologicalinvasions. Available historical evidence suggests that wait-and-see phytosanitary decision-making has dominated the adoption of precautionary measures in most regions and that willingness to under-regulate may sometimes be orders of magnitude greater than willingness to over-regulate. Reducing scientific uncertainty about threats to biosecurity may help mitigate the tendency to under-regulate, and phytosanitary
security measures with relatively modest sunk costs could help protect forests as scientific learning advances. A fuller accounting of the costs associated with type II errors,

  • Citation: Holmes, Thomas P.; Allen, Will; G. Haight, Robert; Keskitalo, E. Carina H.; Marzano, Mariella; Pettersson, Maria; P. Quine, Christopher; Langer, E. R. 2017.Fundamental economic irreversibilities influence policies for enhancing international forest phytosanitary security. Current Forestry Reports. 3(3): 244-254.  11 p.  https://doi.org/10.1007/s40725-017-0065-0.
  • Keywords: Cost-benefit analysis . Externality . Non-market value . Option value . Precautionary principle . Risk .Quasi-option value . Stock effect . Uncertainty
  • Posted Date: August 17, 2017
  • Modified Date: August 17, 2017
  • Print Publications Are No Longer Available

    In an ongoing effort to be fiscally responsible, the Southern Research Station (SRS) will no longer produce and distribute hard copies of our publications. Many SRS publications are available at cost via the Government Printing Office (GPO). Electronic versions of publications may be downloaded, printed, and distributed.

    Publication Notes

    • This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
    • Our online publications are scanned and captured using Adobe Acrobat. During the capture process some typographical errors may occur. Please contact the SRS webmaster if you notice any errors which make this publication unusable.
    • To view this article, download the latest version of Adobe Acrobat Reader.