Published online by Cambridge University Press: 03 June 2014
We developed a partial equilibrium model to examine the welfare impacts of bird damage and its control in California wine grape production. The model incorporates the impacts of pest damage and its control and allows the impacts to vary regionally. Importantly, the model requires minimal information to apply; only elasticities, current market price and production data, and information on the cost and effectiveness of the pest control methods are needed. We rely on data from a recent survey of California growers and use the model to estimate changes in wine grape prices, production levels, and consumer and producer surplus that result from both bird damage and its control in three grape-growing regions of California. Results suggest that eliminating the threat of bird damage and control costs results in an increase in producer and consumer surplus of 1.3% and 3%, respectively. Furthermore, eliminating current bird control and allowing any resulting damage would decrease producer and consumer surplus by 6.6% and 11.5%, respectively. (JEL Classifications: Q11, Q18, Q57)
Funding was provided by the Specialty Crop Research Initiative of the National Institute of Food and Agriculture. We thank the Human Dimensions Research Unit at Cornell University, the California Cherry Advisory Board, and the California Association of Winegrape Growers for their assistance in survey implementation. We also thank an anonymous reviewer for many helpful comments and suggestions.