Control of Invasive Species: Lessons from Miconia in Hawaii

The threat of invasive species stems from their ability to rapidly and irreversibly change ecosystems and degrade the value of ecosystem services. Optimal control of a pre-established exotic pest minimizes the costs of population reduction plus the residual damages from the remaining pest population. The shrubby tree, Miconia calvescens, is used to illustrate dynamic policy options for a forest invader. Potential damages to Hawaii's forest ecosystems are related to decreased aquifer recharge, biodiversity, and other ecosystem values. We find that population reduction is the optimal management policy for the islands of Oahu, Maui, and Hawaii. On the island of Kauai, however, optimal policy calls for deferring control expenditures until the (larger) steady state population is reached. JEL codes: Q23, Q51, Q57 a University of Hawaii, Manoa, HI b Gettysburg College, Gettysburg, PA