This paper reviews the literature on the economics of invasive species management as it applies to invasive species in general and terrestrial invasive species in particular. The paper summarizes a number of recent studies that assign values to the economic impact of terrestrial invasive species on a national scale. This is followed by a review of the economic literature on control and prevention of a biological invasion and the literature on international trade and trade policy with invasive species. The paper then reviews selected studies on terrestrial invasive plants, animals, and microbes, respectively.Key Words: terrestrial invasive species, prevention, control, international trade, bioeconomic modeling Throughout history the spread of plants, animals, and other organisms has been governed by natural ecological processes and has accompanied trade in goods and services and the movement of humans. As a consequence, species are continually introduced to areas outside their native geographic location and some of these species establish themselves as harmful invaders. Invasive species are one of the leading causes of global ecological change. Of 256 vertebrate extinctions with an identifiable cause, 109 are known to be due to biological invaders, while 70 are known to be caused by human exploitation (Cox 1993). In the United States, it is estimated that 40 percent of the threatened or endangered species are at risk due to pressures from invasive species (Nature Conservancy 1996, Wilcove et al. 1998. Invasive species also impose significant economic losses to consumer and producer welfare.The problems associated with invasive species are not new and have long been recognized. U.S. invasive species policy dates to the Lacey Act of 1900. In recent years, however, increased globalization has led scientists and policymakers to focus more attention on the potential costs associated with invasive species introductions. Of the nearly 30 federal U.S. acts pertaining to invasive species, approximately half have been adopted since 1990 (National Agricultural Library 2006). 1As recognition of invasive species problems has grown, so has the economics literature. The purpose of this paper is to review the methodological literature on the economics of invasive species management as it applies to invasive species in general and terrestrial invasive species in particular. The paper is organized as follows. It begins with a summary of a number of recent studies that assign values to the economic impact of terrestrial invasive species on a national scale. This is followed by a review of the economics literature on control and prevention of a biological invasion. The section after that surveys the literature on international trade and trade policy with invasive species. The paper then reviews selected studies on terrestrial invasive plants, animals, and microbes, respectively. The final section contains brief, concluding remarks.There are important aspects of the literature that are not reviewed here. The focus of this survey is ...

Numerous bark- and wood-infesting insects have been introduced to new countries by international trade where some have caused severe environmental and economic damage. Wood packaging material (WPM), such as pallets, is one of the high risk pathways for the introduction of wood pests. International recognition of this risk resulted in adoption of International Standards for Phytosanitary Measures No. 15 (ISPM15) in 2002, which provides treatment standards for WPM used in international trade. ISPM15 was originally developed by members of the International Plant Protection Convention to “practically eliminate” the risk of international transport of most bark and wood pests via WPM. The United States (US) implemented ISPM15 in three phases during 2005–2006. We compared pest interception rates of WPM inspected at US ports before and after US implementation of ISPM15 using the US Department of Agriculture AQIM (Agriculture Quarantine Inspection Monitoring) database. Analyses of records from 2003–2009 indicated that WPM infestation rates declined 36–52% following ISPM15 implementation, with results varying in statistical significance depending on the selected starting parameters. Power analyses of the AQIM data indicated there was at least a 95% chance of detecting a statistically significant reduction in infestation rates if they dropped by 90% post-ISPM15, but the probability fell as the impact of ISPM15 lessened. We discuss several factors that could have reduced the apparent impact of ISPM15 on lowering WPM infestation levels, and suggest ways that ISPM15 could be improved. The paucity of international interception data impeded our ability to conduct more thorough analyses of the impact of ISPM15, and demonstrates the need for well-planned sampling programs before and after implementation of major phytosanitary policies so that their effectiveness can be assessed. We also present summary data for bark- and wood-boring insects intercepted on WPM at US ports during 1984–2008.

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