Social Benefits of Controlling Forest Insect Outbreaks: A Contingent Valuation Analysis in Two Canadian Provinces

This study estimates the social benefits of controlling two very different forest insect outbreaks in New Brunswick (NB) and Saskatchewan (SK), namely spruce budworm (SBW) (Choristoneura fumiferana) and forest tent caterpillar (FTC) (Malacosoma disstria). Using dichotomous choice contingent valuation mail surveys, households in NB and SK were asked to indicate their willingness-to-pay (WTP) for controlling future SBW and FTC outbreaks. A majority of respondents (over 80% in each province) favored controlling outbreaks of these insects. In both provinces, respondents were on average willing to pay more for controlling SBW outbreaks compared to FTC outbreaks. Aggregate social benefits (measured via compensating surplus) associated with proposed insect control programs in NB resulted in annual social benefits of $14.3-20.8 million for SBW control, and $7.9-14.5 million for FTC control. Comparable net benefits in SK were $22.2-32.4 million for SBW control, and $11.7-22.0 million for FTC control. These results highlight the significance and uniqueness of social benefits generated from controlling outbreaks of these insects, and provide a foundation for incorporating them into a full benefit-cost analysis used to help make more informed and efficient policy decisions.