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Understanding behavioural responses to cost-sharing in TB - SE3052

Current government expenditure on bovine TB represents nearly half of all animal health and welfare expenditure in England at c£100m per year. Over recent years this figure has been increasing and is estimated to total £1bn over the next 10 years if nothing further is done.
Experience from other countries, notably New Zealand, has demonstrated that significant progress in tackling the disease can be achieved when farmers are given greater responsibility over the costs and policy for controlling the disease. Potential cost and responsibility options were discussed as part of Defra’s “TB call for views” last year.
Economic rationale suggests that passing more of the costs of TB control to those facing the consequences of the disease could be beneficial as it strengthens the incentives to keep disease out. It may also reduce any perverse incentives caused by government intervention. However, there are clearly risks associated with passing more costs onto farms already struggling to deal with the financial hardships of a TB breakdown. Faced with unsustainable costs, individual farms may be encouraged to not comply with TB control rules which could have a detrimental impact on overall disease control.
The aim of the research project is to understand potential risks of cost sharing options of the TB programme with industry
Project Objectives:
• Collate existing evidence on behavioural impacts of cost sharing in animal health
• Collect new evidence on likely impacts of cost sharing from farming industry or vet profession
• Identify key risks and opportunities of different cost sharing options.
• Identify mititgation options for identified risks
• Identify further evidence priorities for understanding impacts of cost sharing
Time-Scale and Cost
From: 2013

To: 2014

Cost: £31,830
Contractor / Funded Organisations
Royal Agricultural College
Animal Diseases              
Animal Health              
Plants and Animals              
Fields of Study
Animal Health