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Joint production under uncertainty and multifunctionality of agriculture: policy considerations and applied analysis

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Author Info

  • Petr Havlík
  • Patrick Veysset
  • Jean-Marie Boisson
  • Michel Lherm
  • Florence Jacquet

Abstract

The impact of various policy instruments on the production of environmental goods that are complementary to or competing with agricultural commodities is analysed in the light of the uncertainty in output prices and farmers' risk aversion. Some theoretical assessments are first summarised and then tested on a case study concerning beef and grassland biodiversity production in Monts du Cantal, France. The results of simulations carried out by mathematical programming farm-level models show that joint commodity and non-commodity production is nearly independent of the degree of farmers' risk aversion, and that commodity-linked policy instruments are not suitable for the production of environmental goods even under uncertainty. Copyright 2005, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 32 (2005)
Issue (Month): 4 (December)
Pages: 489-515

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Handle: RePEc:oup:erevae:v:32:y:2005:i:4:p:489-515

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Citations

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Cited by:
  1. Bamiere, Laure & David, Maia & Vermont, Bruno, 2011. "Agri-Environmental Policies When the Spatial Pattern of Biodiversity Reserves Matters," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114239, European Association of Agricultural Economists.
  2. Bamière, Laure & Havlík, Petr & Jacquet, Florence & Lherm, Michel & Millet, Guy & Bretagnolle, Vincent, 2011. "Farming system modelling for agri-environmental policy design: The case of a spatially non-aggregated allocation of conservation measures," Ecological Economics, Elsevier, vol. 70(5), pages 891-899, March.
  3. Havlik, Petr & Jacquet, Florence & Boisson, Jean-Marie & Veysset, Patrick & Lherm, Michel, 2005. "Environmental Good Production in the Optimum Activities Portfolio of a Risk Averse Farmer," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24594, European Association of Agricultural Economists.
  4. Mosnier, C. & Agabriel, J. & Lherm, M. & Reynaud, A., 2009. "A dynamic bio-economic model to simulate optimal adjustments of suckler cow farm management to production and market shocks in France," Agricultural Systems, Elsevier, vol. 102(1-3), pages 77-88, October.
  5. Mosnier, Claire & Ridier, Aude & Kphaliacos, Charilaos & Carpy-Goulard, Françoise, 2009. "Economic and environmental impact of the CAP mid-term review on arable crop farming in South-western France," Ecological Economics, Elsevier, vol. 68(5), pages 1408-1416, March.
  6. Jacquet, Florence & Butault, Jean-Pierre & Guichard, Laurence, 2010. "An economic analysis of the possibility of reducing pesticides in French field crops," 120th Seminar, September 2-4, 2010, Chania, Crete 109382, European Association of Agricultural Economists.
  7. 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.
  8. Veysset, P. & Lherm, M. & Bébin, D., 2010. "Energy consumption, greenhouse gas emissions and economic performance assessments in French Charolais suckler cattle farms: Model-based analysis and forecasts," Agricultural Systems, Elsevier, vol. 103(1), pages 41-50, January.
  9. Mosnier, Claire & Agabriel, Jacques & Lherm, Michel & Reynaud, Arnaud, 2008. "Assessing Economic And Technical Impacts Of Non Expected Weather Events On French Suckler Cow Farms Dynamics: A Dynamic Recursive Farm Model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44257, European Association of Agricultural Economists.
  10. Mouysset, L. & Doyen, L. & Jiguet, F. & Allaire, G. & Leger, F., 2011. "Bio economic modeling for a sustainable management of biodiversity in agricultural lands," Ecological Economics, Elsevier, vol. 70(4), pages 617-626, February.
  11. Luciano Pilati & Vasco Boatto, 2013. "Bio-Economics Of Allocatable Pollination Services: Sequential Choices And Jointness In Sites," DEM Discussion Papers 2013/18, Department of Economics and Management.

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