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Biodiversity Conservation and Productivity in Intensive Agricultural Systems

Author

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  • Amani Omer
  • Unai Pascual
  • Noel P. Russell

Abstract

This paper explores the economic effects of biodiversity loss on marketable agricultural output for intensive agricultural systems, which require an increasing level of artificial capital inputs. A theoretical bio-economic model is used to derive a hypothesis about the effect of the state of biodiversity on the optimal crop output both in the longer run and in the transitional path towards the steady-state equilibrium. The hypothesised positive relationship between biodiversity stock and optimal levels of crop output is empirically tested using a stochastic production frontier approach, based on data from a panel of UK specialised cereal farms for the period 1989-2000. The results support the theoretical hypothesis. Increases in biodiversity can lead to a continual outward shift in the output frontier (although at a decreasing rate), controlling for the relevant set of labour and capital inputs. Agricultural transition towards biodiversity conservation may be consistent with an increase in crop output in already biodiversity-poor modern agricultural landscapes. Copyright 2007 Blackwell Publishing Ltd.

Suggested Citation

  • Amani Omer & Unai Pascual & Noel P. Russell, 2007. "Biodiversity Conservation and Productivity in Intensive Agricultural Systems," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 308-329, June.
  • Handle: RePEc:bla:jageco:v:58:y:2007:i:2:p:308-329
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    References listed on IDEAS

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    1. U Pascual & N P Russell & A A Omer, 2003. "Does Loss in Biodiversity Compromise Productivity in Intensive Agriculture?," The School of Economics Discussion Paper Series 0322, Economics, The University of Manchester.
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    Cited by:

    1. Areal, Francisco J. & Tiffin, Richard & Balcombe, Kelvin G., 2012. "Provision of environmental output within a multi-output distance function approach," Ecological Economics, Elsevier, vol. 78(C), pages 47-54.
    2. Jin, Songqing & Meng, Erika C.H. & Hu, Ruifa & Rozelle, Scott & Huang, Jikun, 2008. "Contribution of Wheat Diversity to Total Factor Productivity in China," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
    3. Schönhart, Martin & Schauppenlehner, Thomas & Schmid, Erwin & Muhar, Andreas, 2011. "Integration of bio-physical and economic models to analyze management intensity and landscape structure effects at farm and landscape level," Agricultural Systems, Elsevier, vol. 104(2), pages 122-134, February.
    4. Russell, Noel P. & Omer, Amani A. & Pascual, Unai, 2009. "Technology, preferences and the sustainable intensification of agricultural production," 2009 Conference, August 16-22, 2009, Beijing, China 51743, International Association of Agricultural Economists.
    5. Amani Omer & Unai Pascual & Noel Russell, 2008. "A note on sustainable agricultural intensification through agro-biodiversity conservation," The School of Economics Discussion Paper Series 0807, Economics, The University of Manchester.
    6. Sauer, Johannes & Wossink, Ada, 2010. "The Marginal Cost Of Agri-Environmental Services," 50st Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93939, German Association of Agricultural Economists (GEWISOLA).
    7. Skevas, Theodoros & Stefanou, Spiro E. & Oude Lansink, Alfons, 2014. "Pesticide use, environmental spillovers and efficiency: A DEA risk-adjusted efficiency approach applied to Dutch arable farming," European Journal of Operational Research, Elsevier, vol. 237(2), pages 658-664.
    8. Bareille, François & Dupraz, Pierre, 2016. "Biodiversity productive effects in milk farms of western France: a multi-output primal system," 149th Seminar, October 27-28, 2016, Rennes, France 244774, European Association of Agricultural Economists.
    9. Lokina, Razack B., 2008. "Technical Efficiency and the Role of Skipper Skill in Artisanal Lake Victoria Fisheries," Discussion Papers dp-08-13-efd, Resources For the Future.
    10. Lanz, Bruno & Dietz, Simon & Swanson, Tim, 2018. "The Expansion of Modern Agriculture and Global Biodiversity Decline: An Integrated Assessment," Ecological Economics, Elsevier, vol. 144(C), pages 260-277.
    11. Mirhaj, M. & Razzak, M.A. & Wahab, M.A., 2014. "Comparison of nitrogen balances and efficiencies in rice cum prawn vs. rice cum fish cultures in Mymensingh, North-Eastern Bangladesh," Agricultural Systems, Elsevier, vol. 125(C), pages 54-62.
    12. Areal, Francisco J & Tiffin, Richard & Balcombe, Kelvin, 2010. "Provision of an environmental output within a multi-output distance function approach," MPRA Paper 25051, University Library of Munich, Germany.
    13. Pascual, Unai & Narloch, Ulf & Nordhagen, Stella & Drucker, Adam G., 2011. "The economics of agrobiodiversity conservation for food security under climate change," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 11(1).
    14. Omer, Amani & Pascual, Unai & Russell, Noel, 2010. "A theoretical model of agrobiodiversity as a supporting service for sustainable agricultural intensification," Ecological Economics, Elsevier, vol. 69(10), pages 1926-1933, August.
    15. Sanzidur Rahman & Aree Wiboonpongse & Songsak Sriboonchitta & Yaovarate Chaovanapoonphol, 2009. "Production Efficiency of Jasmine Rice Producers in Northern and North-eastern Thailand," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 419-435.
    16. repec:eee:ecolec:v:137:y:2017:i:c:p:99-109 is not listed on IDEAS
    17. 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.

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