Benefit-Cost Analysis of Locust Control

Following the Spring 2010 outbreak of locusts across the state of Victoria, Frontier (Australia) was engaged by the Victorian Department of Primary Industries (DPI) to review locust-control activities and policies and conduct an ex post benefit-cost analysis of these efforts. The evaluation was based on actual data revealed after the event.

The purpose of this study was to compare the benefits derived from the DPI locust-control program to the costs of conducting the program. The policy intervention was found to be net beneficial. We found that it was important to recognise that the government’s locust-control strategy decisions were made under uncertainty in a situation where payoffs were contingent on weather outcomes. Had seasonal conditions been different, then it is expected that realised net benefits would have been even higher.

For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com or call on +61 (0)3 9620 4488.

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