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How does the economic risk aversion affect biodiversity?

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  • 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)

Abstract

The present paper analyses the role played by risk aversion in the reconciling of agricultural income and biodiversity. A bio-economic mode which articulates bird community dynamics and representative farmers selecting land uses within an uncertain macro-economic context is developed. It is spatialized and calibrated at a regional scale for France through national databases. The impact of risk aversion is assessed on economic, agricultural and ecological outputs through projections at the 2050 horizon. A high enough aversion proves sufficient to promote global bio-economic performance and multi-functional agriculture. This occurs through a diversification mechanism on regional land-uses. Spatial disparities however suggest that public incentives could be necessary to reinforce the diversification and bio-economic effectiveness.

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Bibliographic Info

Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2012-03.

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Date of creation: 2012
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Handle: RePEc:grt:wpegrt:2012-03

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Keywords: Agriculture; Aversion; Bio-economic modeling; Bird; Biodiversity; Diversification; Public good; Spatial;

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  1. Petr Havlík & Patrick Veysset & Jean-Marie Boisson & Michel Lherm & Florence Jacquet, 2005. "Joint production under uncertainty and multifunctionality of agriculture: policy considerations and applied analysis," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(4), pages 489-515, December.
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  12. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics, Blackwell, vol. 27(1), pages 75-83, May.
  13. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
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Cited by:
  1. Lauriane MOUYSSET & Luc DOYEN & Jean-Christophe PEREAU & Fréderic JIGUET, 2013. "A double benefit of biodiversity in agriculture," Cahiers du GREThA 2013-04, Groupe de Recherche en Economie Théorique et Appliquée.

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