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Sustainability 2015, 7(12), 16588-16598; doi:10.3390/su71215836

An Empirical Assessment of the Economic Damage Caused by Apple Marssonina Blotch and Pear Scab Outbreaks in Korea

1
Department of Agricultural Economic and Rural Development, Seoul National University, Seoul 151-921, Korea
2
Research Institute for Agriculture and Life Sciences, Seoul National University, Seoul 151-921, Korea
*
Authors to whom correspondence should be addressed.
Academic Editor: Marc A. Rosen
Received: 16 September 2015 / Revised: 9 December 2015 / Accepted: 14 December 2015 / Published: 16 December 2015
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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Abstract

Marssonina blotch in apples and pear scab are diseases that may affect apple and pear production as well as related industries significantly. The range and scale of the economic influence of such outbreaks should be clarified to ensure the sustainable growth of these industries. This study evaluates the direct and indirect economic effects of outbreaks through a partial equilibrium approach and an input–output model; direct influences are measured on the basis of reduced production, and the estimated costs are 34,926 million Korean Won (mKRW) (US$ 29.79 million) and 11,767 mKRW (US$ 10.04 million) for apples and pears, respectively. The indirect effects are determined according to changes in the quantity of apples and pears supplied to the market; these effects can induce social welfare losses. These costs are estimated to be 305,065 mKRW (US$ 259.08 million) for apples infected with Marssonina blotch, which accounts for 186,628 mKRW (US$ 158.50 million) in producer surplus and 118,437 mKRW (US$ 100.58 million) in consumer surplus and 72,693 mKRW (US$ 61.74 million) for pears infected with scab, which accounts for 44,106 mKRW (US$ 37.46 million) in producer surplus and 28,587 mKRW (US$ 24.28 million) in consumer surplus. The findings from this study can be referenced by the Korean government in designing more effective control measures toward sustainable growth of related industry. View Full-Text
Keywords: economic assessment; fruit diseases; indirect effect; partial equilibrium model; risk analysis economic assessment; fruit diseases; indirect effect; partial equilibrium model; risk analysis
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Kwon, D.; Kim, S.; Kim, Y.; Son, M.; Kim, K.; An, D.; Kim, B.H.S. An Empirical Assessment of the Economic Damage Caused by Apple Marssonina Blotch and Pear Scab Outbreaks in Korea. Sustainability 2015, 7, 16588-16598.

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