Economics
The macroeconomic cost of catastrophic pollinator declines
Document Type
Article
Abstract
We develop a computable general equilibrium (CGE) approach to assess the macroeconomic impacts of productivity shocks due to catastrophic losses of pollination ecosystem services at global and regional scales. In most regions, producers of pollinator dependent crops end up benefiting because direct output losses are outweighed by increased prices, while non-agricultural sectors experience large adverse indirect impacts, resulting in overall losses whose magnitudes vary substantially. By comparison, partial equilibrium analyses tend to overstate the costs to agricultural producers, understate aggregate economy-wide losses, and overstate the impacts on consumers' welfare. Our results suggest an upper bound on global willingness to pay for agricultural pollination services of $127-$152 billion.
Publication Title
Ecological Economics
Publication Date
6-2016
Volume
126
First Page
1
Last Page
13
ISSN
0921-8009
DOI
10.1016/j.ecolecon.2016.01.011
Keywords
agriculture, ecosystem services, general equilibrium model, pollination, valuation
Repository Citation
Bauer, Dana Marie and Sue Wing, Ian, "The macroeconomic cost of catastrophic pollinator declines" (2016). Economics. 232.
https://commons.clarku.edu/faculty_economics/232
