Crop biodiversity, risk management and the implications of agricultural assistance
AbstractThis paper presents a theoretical and empirical analysis of the impact of financial assistance to farms on crop biodiversity in an uncertain setting. The findings reveal that risk aversion is an important driving force for crop biodiversity conservation. Risk averse farmers can hedge against the uncertainty they face by allocating land to different crop species. However, policies intended to stabilize revenues by supporting particular species may alter this link by delinking crop biodiversity from the management of revenues risk.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 55 (2005)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Other versions of this item:
- Salvatore Di Falco & Charles Perrings, 2004. "Crop Biodiversity, Risk Management and the Implications of Agricultural Assistance," Working Papers 0084, National University of Ireland Galway, Department of Economics, revised 2004.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- LaFrance, Jeffrey T., 1992.
"Do Increased Commodity Prices Lead To More Or Less Soil Degradation?,"
Australian Journal of Agricultural Economics,
Australian Agricultural and Resource Economics Society, vol. 36(01), April.
- Jeffrey T. LaFrance, 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 57-82, 04.
- Derek Byerlee & Edward Souza, 1997. "Wheat Rusts and the Costs of Genetic Diversity in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 726-737.
- Salvatore Di Falco & Charles Perrings, 2003. "Crop Genetic Diversity, Productivity and Stability of Agroecosystems. A Theoretical and Empirical Investigation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(2), pages 207-216, 05.
- Smale, M. & Meng, E. & Brennan, J. P. & Hu, Ruifa, 2003. "Determinants of spatial diversity in modern wheat: examples from Australia and China," Agricultural Economics, Blackwell, vol. 28(1), pages 13-26, January.
- Smale, Melinda & Bellon, Mauricio R & Aguirre Gomez, Jose Alfonso, 2001. "Maize Diversity, Variety Attributes, and Farmers' Choices in Southeastern Guanajuato, Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 50(1), pages 201-25, October.
- Grepperud, Sverre, 1997. "Poverty, Land Degradation and Climatic Uncertainty," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 586-608, October.
- Hild Rygnestad & Rob Fraser, 1996. "Land Heterogeneity And The Effectiveness Of Cap Set-Aside," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 255-260.
- Melinda Smale & Jason Hartell & Paul W. Heisey & Ben Senauer, 1998. "The Contribution of Genetic Resources and Diversity to Wheat Production in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 482-493.
- Léonard,Daniel & Long,Ngo van, 1992.
"Optimal Control Theory and Static Optimization in Economics,"
Cambridge University Press, number 9780521331586, October.
- Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521337465, October.
- Grepperud, Sverre, 2000. "Optimal soil depletion with output and price uncertainty," Environment and Development Economics, Cambridge University Press, vol. 5(03), pages 221-240, July.
- Brush, Stephen B. & Taylor, J. Edward & Bellon, Mauricio R., 1992. "Technology adoption and biological diversity in Andean potato agriculture," Journal of Development Economics, Elsevier, vol. 39(2), pages 365-387, October.
- Moschini, GianCarlo & Hennessy, David A., 2001.
"Uncertainty, Risk Aversion, and Risk Management for Agricultural Producers,"
Staff General Research Papers
5323, Iowa State University, Department of Economics.
- Moschini, Giancarlo & Hennessy, David A., 2001. "Uncertainty, risk aversion, and risk management for agricultural producers," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 2, pages 88-153 Elsevier.
- Martin Schönhart & Erwin Schmid & Uwe A. Schneider, 2009. "CropRota – A Model to Generate Optimal Crop Rotations from Observed Land Use," Working Papers 452009, Institute for Sustainable Economic Development, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna.
- Birgit Müller & Martin Quaas & Karin Frank & Stefan Baumgärtner, 2009.
"Pitfalls and potential of institutional change: Rain-index insurance and the sustainability of rangeland management,"
Working Paper Series in Economics
149, University of Lüneburg, Institute of Economics.
- Müller, Birgit & Quaas, Martin F. & Frank, Karin & Baumgärtner, Stefan, 2011. "Pitfalls and potential of institutional change: Rain-index insurance and the sustainability of rangeland management," Ecological Economics, Elsevier, vol. 70(11), pages 2137-2144, September.
- Sipilainen, Timo & Huhtala, Anni, 2011.
"Opportunity Costs of Providing Crop Diversity in Organic and Conventional Farming: Would Targeted Environmental Policies Make Economic Sense?,"
2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland
114527, European Association of Agricultural Economists.
- Timo Sipil�inen & Anni Huhtala, 2013. "Opportunity costs of providing crop diversity in organic and conventional farming: would targeted environmental policies make economic sense?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 40(3), pages 441-462, July.
- Knoke, Thomas & Steinbeis, Otto-Emmanuel & Bösch, Matthias & Román-Cuesta, Rosa María & Burkhardt, Thomas, 2011. "Cost-effective compensation to avoid carbon emissions from forest loss: An approach to consider price-quantity effects and risk-aversion," Ecological Economics, Elsevier, vol. 70(6), pages 1139-1153, April.
- Nastis, Stefanos A. & Michailidis, Anastasios & Mattas, Konstadinos, 2011. "Crop biodiversity repercussions of subsidized organic farming in Greece," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114628, European Association of Agricultural Economists.
- Kato, Edward & Nkonya, Ephraim & Place, Frank & Mwanjalolo, Majaliwa, 2010. "An econometric investigation of impacts of sustainable land management practices on soil carbon and yield risk: A potential for climate change mitigation," IFPRI discussion papers 1038, International Food Policy Research Institute (IFPRI).
- Elisa Gatto & Guido Signorino, 2011. "Long-run relationship between crop-biodiversity and cereal production under the CAP reform: evidence from Italian regions," ERSA conference papers ersa11p964, European Regional Science Association.
- Sipilainen, Timo & Huhtala, Anni, 2012. "Opportunity Costs of Providing Crop Diversity in Organic and Conventional Farming," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126652, International Association of Agricultural Economists.
- Sookhtanlo, Mojtaba & Sarani, Valiollah, 2011. "Analysis of Factors Affecting on Risk Management of Wheat Production Among Wheat Farmers (Razavieh Region, Khorasan-E-Razavi Province, Iran)," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(4), December.
- Charles Palmer & Salvatore Di Falco, 2012. "Biodiversity, poverty, and development," Oxford Review of Economic Policy, Oxford University Press, vol. 28(1), pages 48-68, Spring.
- Kato, Edward & Ringler, Claudia & Yesuf, Mahmud & Bryan, Elizabeth, 2009.
"Soil and water conservation technologies: A buffer against production risk in the face of climate change?: Insights from the Nile Basin in Ethiopia,"
IFPRI discussion papers
871, International Food Policy Research Institute (IFPRI).
- Edward Kato & Claudia Ringler & Mahmud Yesuf & Elizabeth Bryan, 2011. "Soil and water conservation technologies: a buffer against production risk in the face of climate change? Insights from the Nile basin in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 593-604, 09.
- Martin F. Quaas & Stefan Baumgärtner, 2006.
"The Private and Public Insurance Value of Conservative Biodiversity Management,"
Working Paper Series in Economics
33, University of Lüneburg, Institute of Economics.
- Baumgärtner, Stefan & Quaas, Martin, 2005. "The private and public insurance value of conservative biodiversity management," UFZ Discussion Papers 27/2005, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
- Stefan Baumgärtner & Martin F. Quaas, 2010.
"Managing increasing environmental risks through agrobiodiversity and agrienvironmental policies,"
International Association of Agricultural Economists, vol. 41(5), pages 483-496, 09.
- Stefan Baumgärtner & Martin F. Quaas, 2008. "Managing increasing environmental risks through agro-biodiversity and agri-environmental policies," Working Paper Series in Economics 80, University of Lüneburg, Institute of Economics.
- Eugenio Figueroa B. & Roberto Pasten C., 2012. "The insurance value of forests in supplying climate regulation," Working Papers wp372, University of Chile, Department of Economics.
- Di Falco, Salvatore & Capitanio, Fabian & Adinolfi, Felice, 2011. "Natural Vs Financial Insurance in the Management of Weather Risk Exposure in the Italian Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114325, European Association of Agricultural Economists.
- Stefan Baumgärtner & Martin F. Quaas, 2007. "Agro-biodiversity as natural insurance and the development of financial insurance markets," Working Paper Series in Economics 61, University of Lüneburg, Institute of Economics.
- Béné, C. & Doyen, L., 2008. "Contribution values of biodiversity to ecosystem performances: A viability perspective," Ecological Economics, Elsevier, vol. 68(1-2), pages 14-23, December.
- Sipilainen, Timo & Marklund, Per-Olov & Huhtala, Anni, 2008. "Efficiency In Agricultural Production Of Biodiversity: Organic Vs. Conventional Practices," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6478, European Association of Agricultural Economists.
- Lauriane MOUYSSET (CERSP, UMR 7204, CNRS-MNHN-UPMC, SADAPT, INRA, UMR 1048) & Luc DOYEN (CERSP, UMR 7204, CNRS-MNHN-UPMC, GREThA, CNRS, UMR 5113) & Fréderic JIGUET (CERSP, UMR 7204, CNRS-MNHN-UPMC), 2012. "How does the economic risk aversion affect biodiversity?," Cahiers du GREThA 2012-03, Groupe de Recherche en Economie Théorique et Appliquée.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.