Economic value of arthropod biological control

Authors: Naranjo, Steven; FRISVOLD, GEORGE - University Of Arizona; ELLSWORTH, PETER - University Of Arizona

Submitted to: Book Chapter
Publication Type: Book / Chapter
Publication Acceptance Date: 3/27/2019
Publication Date: 9/8/2019
Citation: Naranjo, S.E., Frisvold, G.B., Ellsworth, P.C. 2019. Economic value of arthropod biological control. In D. Onstad, P. Crain, editors. The Economics of Integrated Pest Management for Insects. Dordrecht-Heidelberg-London-New York: Springer. p. 49-85.

Interpretive Summary: Biological control of insect pests is an integral tactic of modern integrated pest management. The number of studies quantifying the economic benefits of biological control remains small relative to the total number of all such programs. Yet, the estimates from those studies suggest biological control has immense value. Here we present economic concepts and discuss methods for placing an economic value on biological control services. Simple partial budgeting, economic surplus modelling, benefit-cost analyses and contingent valuation are discussed. We then summarize and synthesize the extant studies that have attempted to quantify the economic outcomes of the biological control of arthropod pest with natural enemies, with particular focus on introductory (classical) and conservation biological control. Efforts in augmentation biological control and the industry that supports this approach are briefly summarized. Economic analyses have been conducted on fewer that 1% of all introductory biological control projects targeting arthropod pests, but these few studies suggest an overall benefit to cost ratio of 61:1 with a total net present value of over $31 billion (2018 $US). While relatively few economic analyses have been conducted on the efficacy of augmentation biological control, the industry was valued at $1.7 billion in 2016 with a 15% growth rate since 2005. Conservation represents the oldest form of biological control practice, and the few studies that have examined economics suggest highly variable value (average of $74/ha) dependent on the value of the crop being protected and on the approach to conservation. We attempt to draw connections between economic concepts and methodologies, and what has actually been achieved in extant studies of biological control. Interaction among diverse scientists and stakeholders will be required to measure the inclusive benefits and costs of biological control. However, focus on gaining greater accuracy in measurement should be balanced with additional effort to educate both end-users and public institutions about the immense value of biological control in order to spur greater adoption, and investment in research and implementation.

Technical Abstract: Biological control of insect pests is an integral tactic of modern integrated pest management. The number of studies quantifying the economic benefits of biological control remains small relative to the total number of all such programs. Yet, the estimates from those studies suggest biological control has immense value. Here we present economic concepts and discuss methods for placing an economic value on biological control services. Simple partial budgeting, economic surplus modelling, benefit-cost analyses and contingent valuation are discussed. We then summarize and synthesize the extant studies that have attempted to quantify the economic outcomes of the biological control of arthropod pest with natural enemies, with particular focus on introductory (classical) and conservation biological control. Efforts in augmentation biological control and the industry that supports this approach are briefly summarized. Economic analyses have been conducted on fewer that 1% of all introductory biological control projects targeting arthropod pests, but these few studies suggest an overall benefit to cost ratio of 61:1 with a total net present value of over $31 billion (2018 $US). While relatively few economic analyses have been conducted on the efficacy of augmentation biological control, the industry was valued at $1.7 billion in 2016 with a 15% growth rate since 2005. Conservation represents the oldest form of biological control practice, and the few studies that have examined economics suggest highly variable value (average of $74/ha) dependent on the value of the crop being protected and on the approach to conservation. We attempt to draw connections between economic concepts and methodologies, and what has actually been achieved in extant studies of biological control. Interaction among diverse scientists and stakeholders will be required to measure the inclusive benefits and costs of biological control. However, focus on gaining greater accuracy in measurement should be balanced with additional effort to educate both end-users and public institutions about the immense value of biological control in order to spur greater adoption, and investment in research and implementation.