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

Author

Listed:
  • 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.

Suggested Citation

  • 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.
  • 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. Bamiére, 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. 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.
    3. 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.
    4. 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.
    5. Jacquet, Florence & Butault, Jean-Pierre & Guichard, Laurence, 2011. "An economic analysis of the possibility of reducing pesticides in French field crops," Ecological Economics, Elsevier, vol. 70(9), pages 1638-1648, July.
    6. Bamière, Laure & David, Maia & Vermont, Bruno, 2013. "Agri-environmental policies for biodiversity when the spatial pattern of the reserve matters," Ecological Economics, Elsevier, vol. 85(C), pages 97-104.
    7. Luciano Pilati & Mario Prestamburgo, 2016. "Sequential Relationship between Profitability and Sustainability: The Case of Migratory Beekeeping," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-8, January.
    8. Moon, Wanki & Chang, Jae Bong & Asirvatham, Jebaraj, 2016. "Identifying Factors Driving US Citizens’ Preferences about Multifunctional Agriculture," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230032, Southern Agricultural Economics Association.
    9. Wossink, Ada & Swinton, Scott M., 2007. "Jointness in production and farmers' willingness to supply non-marketed ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 297-304, December.
    10. 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.
    11. 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.
    12. 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.
    13. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2016. "The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), September.
    14. Luciano Pilati & Vasco Boatto, 2014. "Jointness in Sites: The Case of Migratory Beekeeping," DEM Discussion Papers 2014/10, Department of Economics and Management.
    15. Petr Havlik & Geoffroy Enjolras & Jean-Marie Boisson & Florence Jacquet & Michel Lherm & Patrick Veysset, 2008. "Environmental good production in the optimum activities portfolio of a risk averse-farmer," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 86(1), pages 9-33.
    16. 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.
    17. 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.

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