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On the Productive Value of Biodiversity

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  • Chavas, Jean-Paul

Abstract

The paper investigates the value of biodiversity as it relates to the productive value of services provided by an ecosystem. It analyzes how the value of an ecosystem can be "greater than the sum of its parts." First, it proposes a general measure of the value of biodiversity. Second, this measure is decomposed into four components, reflecting the role of complementarity, scale, convexity, and catalytic effects. This provides new information on the sources and determinants of biodiversity value. Third, the paper examines the role of uncertainty. In this context, the role of risk and of downside-risk exposure and their effects on the value of biodiversity are explored. This provides useful insights on how management and policy decisions can affect the value of biodiversity.

Suggested Citation

  • Chavas, Jean-Paul, 2006. "On the Productive Value of Biodiversity," 2006 Annual meeting, July 23-26, Long Beach, CA 21280, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21280
    DOI: 10.22004/ag.econ.21280
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    Cited by:

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    2. Sodjahin, Ibirénoyé Honoré Romaric & Féménia, Fabienne & Koutchade, Obafémi Philippe & Carpentier, Alain, 2022. "On the economic value of the agronomic effects of crop diversification for farmers: estimation based on farm cost accounting data," Working Papers 320398, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Williams, Kristen J. & Reeson, Andrew F. & Drielsma, Michael J. & Love, Jamie, 2012. "Optimised whole-landscape ecological metrics for effective delivery of connectivity-focused conservation incentive payments," Ecological Economics, Elsevier, vol. 81(C), pages 48-59.
    4. Leander Raes & Nikolay Aguirre & Marijke D’Haese & Guido Huylenbroeck, 2014. "Analysis of the cost-effectiveness for ecosystem service provision and rural income generation: a comparison of three different programs in Southern Ecuador," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 471-498, June.
    5. Ruijs, A. & Wossink, A. & Kortelainen, M. & Alkemade, R. & Schulp, C.J.E., 2013. "Trade-off analysis of ecosystem services in Eastern Europe," Ecosystem Services, Elsevier, vol. 4(C), pages 82-94.
    6. Sodjahin, Romaric & Carpentier, Alain & Koutchade, Obafèmi Philippe & Femenia, Fabienne, 2022. "On the economic value of the agronomic effects of crop diversification for farmers: Estimation based on farm cost accounting data," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322295, Agricultural and Applied Economics Association.
    7. Jean-Paul Chavas, 2008. "On the economics of agricultural production ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(4), pages 365-380, December.
    8. Lambini, Cosmas Kombat & Nguyen, Trung Thanh & Abildtrup, Jens & Pham, Van Dien & Tenhunen, John & Garcia, Serge, 2018. "Are Ecosystem Services Complementary or Competitive? An Econometric Analysis of Cost Functions of Private Forests in Vietnam," Ecological Economics, Elsevier, vol. 147(C), pages 343-352.
    9. François Bareille & Pierre Dupraz, 2017. "Biodiversity Productive Capacity in Mixed Farms of North-West of France: a Multi-output Primal System," Working Papers SMART 17-03, INRAE UMR SMART.
    10. Bareille, Francois & Letort, Elodie & Dupraz, Pierre, 2017. "How Do Farmers Manage Their Biodiversity Through Time? A Dynamic Acreage Allocation Model With Productive Feedback," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260894, European Association of Agricultural Economists.
    11. 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.
    12. Elena Ojea & Paulo Nunes & Maria Loureiro, 2010. "Mapping Biodiversity Indicators and Assessing Biodiversity Values in Global Forests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 329-347, November.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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