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Research article2021Peer reviewedOpen access

Optimal Antimicrobial Use under Countervailing Externalities

Delmond, Anthony R.; Ahmed, Haseeb

Abstract

Over-or underprovision of antimicrobials under free-riding and resistance externalities can be economically important through their impacts on animal health, human health, and food security. This paper models antimicrobial use given disease dynamics with (i) free-riding incentives and (ii) antimicrobial resistance. Our results suggest a strong potential for overprovision of antimicrobials when ignoring resistance dynamics. Numerical simulation indicates an increase in the cost of disease management with increases in resistance levels. Policy implications are discussed in the context of animal health and disease-control subsidy programs in the developing world as well as unregulated sale of antimicrobials.

Keywords

antimicrobial resistance; free riding; livestock disease; smallholder production

Published in

Journal of Agricultural and Resource Economics
2021, Volume: 46, number: 3, pages: 490-508
Publisher: WESTERN AGRICULTURAL ECONOMICS ASSOC

    Associated SLU-program

    AMR: Bacteria

    Sustainable Development Goals

    Ensure healthy lives and promote well-being for all at all ages

    UKÄ Subject classification

    Economics

    Publication identifier

    DOI: https://doi.org/10.22004/ag.econ.307456

    Permanent link to this page (URI)

    https://res.slu.se/id/publ/113943