Potential Economic Damage From Introduction of Brown Tree Snakes, Boiga Irregularis (Reptilia: Colubridae), to The Islands Of Hawai‘i

The Brown Tree Snake (Boiga irregularis) has caused ecological and economic damage to Guam, and the snake has the potential to colonize other islands in the Pacific Ocean. This study quantifies the potential economic damage if the snake were translocated, established in the state of Hawaii, and causing damage at levels similar to those on Guam. Damages modeled included costs of medical treatments due to snakebites, snake-caused power outages, and decreased tourism resulting from effects of the snake. Damage caused by presence of the Brown Tree Snake on Guam was used as a guide to estimate potential economic damage to Hawaii from both medical- and power outage–related damage. To predict tourism impact, a survey was administered to Hawaiian tourists that identified tourist responses to potential effects of the Brown Tree Snake. These results were then used in an input-output model to predict damage to the state economy. Summing these damages resulted in an estimated total potential annual damage to Hawaii of between $593 million and $2.14 billion. This economic analysis provides a range of potential damages that policy makers can use in evaluation of future prevention and control programs.

Energy Restriction During Breeding Gilt Development: An Economic Analysis

Swine production has increasingly become a lowmargin business. As costs of production have increased, producers are continuing to increase efficiency in both market pig production and gilt development. Restricting energy during gilt development reduces feeding costs and can enhance some productivity measures, but can also negatively impact other areas of production. Thus, the net economic returns from a restricted energy gilt development program are unclear. This study utilized gilt development and market pig production data for two genetic lines of hogs, LWxLR (a cross between industry Large White and Landrace) and L45X (a Nebraska line selected 23 generations for increased litter size) from Johnson and Miller and Johnson et al., to estimate the returns to finishing market hogs using conventional and restricted energy gilt development programs.

Tiered Pricing and Cost Functions: Are Equity, Cost Recovery and Economic Efficiency Compatible Goals?

Suppliers of water and energy are frequently natural monopolies, with their pricing regulated by governmental agencies. Pricing schemes are evaluated by the efficiency of the resource allocation they lead to, the capacity of the utilities to capture their costs and the distributional effects of the policies, in particular, impacts on the poor. One pricing approach has been average cost pricing, which guarantees cost recovery and allows utilities to provide their product at relatively low prices. However, average cost pricing leads to economically inefficient consumption levels, when sources of water and energy are limited and increasing the supply is costly. An alternative approach is increasing block rates (hereafter, IBR or tiered pricing), where individuals pay a low rate for an initial consumption block and a higher rate as they increase use beyond that block. An example of IBR is shown in Figure 1 (on next page), which shows a rate structure for residential water use. With the rates in Figure 1, a household would be charged $0.46 and $0.71 per hundred gallons for consumption below and above 21,000 gallons per month, respectively.