Journal article

Budgeting and portfolio allocation for biosecurity measures

Tom Kompas, Long Chu, Van Ha Pham, Daniel Spring

AUSTRALIAN JOURNAL OF AGRICULTURAL AND RESOURCE ECONOMICS | WILEY | Published : 2019

Abstract

This paper presents a practical model for optimally allocating a budget across different biosecurity threats and measures (e.g. prevention or border quarantine, active surveillance for early detection, and containment and eradication measures) to ensure the highest rate of return. Our portfolio model differs from the common principle, which ranks alternative projects by their benefit cost ratios and picks the one that generates the highest average benefit cost ratio. The model we propose, instead, aims to allocate shares of the budget to the species where it is most cost-effective, and consequently determine the optimal scale of the control program for each threat under varying budget constr..

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