IDEAS home Printed from
   My bibliography  Save this paper

Policy implementations for organic agriculture: A real options approach


  • Tzouramani, Irene
  • Liontakis, Angelos E.
  • Sintori, Alexandra
  • Alexopoulos, George


Organic farming has experienced a vast increase within the EU, despite the fact that it implies greater risk and uncertainty than that of conventional farming. This is the result of the increased environmental concern and the rising demand for quality food, which led to the implementation of the organic policy scheme. Nevertheless, the production of organic fruits, including cherries, is still limited in the EU. Farmers will adopt this alternative farming system only if the support provided by the existing policy regime out weights the increased risk and uncertainty. This study explores the effectiveness of the current policy measures for the production of organic cherries in Greece, using the real options methodology. The framework of real options analysis is an appropriate form of analysis so as to examine the investment’s profitability under risk and uncertainty and assess the economic incentives offered to organic farmers. The results indicate that the economic incentives provided by the existing policy regime, compensate for the risk and the uncertainty that farmers are undertaking. Furthermore, this study reveals that the profitability of the economic activity explored, lies mainly on the subsidies organic farmers receive.

Suggested Citation

  • Tzouramani, Irene & Liontakis, Angelos E. & Sintori, Alexandra & Alexopoulos, George, 2009. "Policy implementations for organic agriculture: A real options approach," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51079, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc09:51079
    DOI: 10.22004/ag.econ.51079

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Rahim, Afaf H. & van Ierland, Ekko C. & Wesseler, Justus, 2007. "Economic incentives for abandoning or expanding gum arabic production in Sudan," Forest Policy and Economics, Elsevier, vol. 10(1-2), pages 36-47, December.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Agricultural and Food Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc09:51079. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.