A Quick Introduction to the Economic Impacts of Pollinator Deficits

Exporter with Pollinator Deficit

Qed0

Qes1

Pw1

Qed1

Qes0

Initial producer surplus equals area C+D

Pollinator deficit causes price to rise and the amount exported increases.

Supply Curve shifts to the left

New producer surplus is A+B+C. Net change in producer surplus is A+B-D

Pw0

Hence net change is societal welfare is (A+B-D)-A which equals B-D

Loses in consumer surplus is area A.