The economics of rabbit control in Central Otago: A preliminary analysis

With contributions by J.M. Williams, J. Bell and T.M. Broad, Agricultural Research Division, Ministry of Agriculture and Fisheries. Prepared under contract for Agricultural Research Division Ministry of Agriculture and Fisheries, Wellington

This paper reports a preliminary examination of the economic efficiency and equity implications of recent rabbit control policies and programmes. The Alexandra Pest Destruction Board in Central Otago was used as a case study. Public and private expenditure data on rabbit control were collected and analysed for the period 1974-75 through 1981-82. Control programme benefits were estimated using data obtained in a survey of runholders and from historical production records. Programme costs were developed from actual expenditure data on control operations and administration based on Board records. While the estimated benefits are much less precise in comparison to programme costs, the results of the cost-benefit analysis suggest that significant cost savings can be achieved in meeting the stated objectives of current pest management policies. In particular, the level of annual expenditure in recent years on those lands which can be regarded as good natural habitat for the feral rabbit does not appear to be warranted, since such land types have an inherently low productive capacity and could not sustain the present level of control input on a 'user pays' basis. Although certain public benefits (e.g., land and water conservation) were not estimated, such benefits would have to be quite large to justify recent levels of annual taxpayer input into APDB control operations. The incidence of programme costs under present policy shows that most of the burden is borne by the tax-paying public. The report concludes with some suggestions to appraise these implications more accurately for regional and national public policy.