Assessing Economic Impact (Research)

Estimating potential damages and losses caused by the invasive spotted lanternfly

Credit: Michael Houtz, Penn State

Problem

What is at stake if the spotted lanternfly continues to spread across Pennsylvania?

The spotted lanternﬂy—an invasive nonnative insect—feeds on the sap of fruit, ornamental, and woody plants, posing a signiﬁcant threat to the state's economy.

It was ﬁrst discovered in southeastern Pennsylvania in 2014. It has since spread and is conﬁrmed in 26 Pennsylvania counties, all of which are under a state-imposed quarantine. The insect has also been found in parts of the ﬁve surrounding states.

Findings

Researchers examined the impact of the spotted lanternﬂy on the economy, combining data from government reports, crop production experts, industry surveys, and interviews with stakeholders.

In the quarantine zone, damage is currently estimated to be $50.1 million per year with a loss of 484 jobs. A worst-case scenario increases these damages to $92.8 million per year with a loss of 927 jobs. If it spreads throughout Pennsylvania, damages could reach as high as $554 million, with a loss of 4,987 jobs.

Impact

This study is the ﬁrst to estimate the potential economic ramiﬁcations of the invasive spotted lanternﬂy and provides guideposts for decision makers in their response to this insect. The potential spread of this pest and the estimated economic damages outlined in this report argue for the continuance of existing programs, the strengthening of research and management efforts, and additional funding to ﬁght this pest.

Related Research Areas: Community Resilience and Capacity, Environmental Resilience

Research Credit

Team

Jayson Harper, Timothy W. Kelsey, Lynn Kime, William Stone

Participating Departments

Agricultural Economics, Sociology, and Education

Competitive Funding

Center for Rural Pennsylvania

Federal and State Appropriations

USDA NIFA Hatch Multistate Projects PEN04612 and PEN04633, Accession #1010877 and #1014522; USDA NIFA Smith-Lever Project PEN08103

Emerging Discoveries

Scientists examine potential economic impact of spotted lanternfly in PA

January 15, 2020

If not contained, the spotted lanternfly potentially could drain Pennsylvania’s economy of at least $324 million annually and cause the loss of about 2,800 jobs, according to a study carried out by economists in Penn State’s College of Agricultural Sciences.