Economics and the Adoption of Livestock Vaccination: Analysis and New Insights
DOI:
https://doi.org/10.12970/2310-0796.2020.08.09Keywords:
Animal health, Decision-making, Economics, Externalities, Livestock vaccination, Market adjustments.Abstract
This article uses economic principles and theory and draws on the available scholarly literature to examine the economics of vaccinating livestock. After providing relevant information about the nature of livestock vaccines, the implications of economic principles for private decisions and the gains from livestock vaccination are specified. Empirical findings on this topic are assessed and it is demonstrated that the overhead (fixed) costs involved in vaccinating livestock are an important profitability influence on the willingness of livestock owners to vaccinate their livestock. In considering the economics of livestock, it is necessary to go beyond decision making by individual livestock owners. For example, the externality or spillover effects of livestock vaccination can be of economic importance and can justify the adoption of public policies which result in more livestock vaccination regionally or nationally than otherwise would occur. Furthermore, in market economies, the distribution of economic gains between livestock producers and consumers of livestock products depends on the nature of market adjustments. As demonstrated, this can result in livestock owners only receiving a small share of the economic benefits from vaccination. Moreover, in some cases, their economic surplus can decline. Desirable areas of future research involving economics and animal health are identified. The importance of combining natural and social science in further studies is identified.
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