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A double benefit of biodiversity in agriculture

Author

Listed:
  • Lauriane MOUYSSET
  • Luc DOYEN
  • Jean-Christophe PEREAU
  • Fréderic JIGUET

Abstract

This paper examines the role played by biodiversity goals in the design of agricultural policies. A bio-economic model is developed with a dynamic and multi-scale perspective. It couples biodiversity dynamics, farming land-uses selected at the micro level and public policies at the macro level based on financial incentives for land-uses. The public decision maker provides optimal incentives with respect to both biodiversity and budgetary constraints. These optimal policies are then analyzed through their private, public and total costs. The model is calibrated and applied to metropolitan France at the Small Agricultural Region (SAR) scale using common birds as biodiversity metrics. Results put forward a decreasing and concave efficiency curve for different biodiversity indicators and economic scores stressing the underlying bio-economic trade-off. The analysis of total and public costs also suggests that accounting for biodiversity can generate a second benefit in terms of public budget. It is argued how a regional redistribution of this public earning to the farmers could promote the acceptability of biodiversity goals in agricultural policies.

Suggested Citation

  • 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.
  • Handle: RePEc:grt:wpegrt:2013-04
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    File URL: http://cahiersdugretha.u-bordeaux4.fr/2013/2013-04.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Semaan, Josephine & Flichman, Guillermo & Scardigno, Alessandra & Steduto, Pasquale, 2007. "Analysis of nitrate pollution control policies in the irrigated agriculture of Apulia Region (Southern Italy): A bio-economic modelling approach," Agricultural Systems, Elsevier, vol. 94(2), pages 357-367, May.
    4. Alavalapati, Janaki R. R. & Stainback, George A. & Carter, Douglas R., 2002. "Restoration of the longleaf pine ecosystem on private lands in the US South: an ecological economic analysis," Ecological Economics, Elsevier, vol. 40(3), pages 411-419, March.
    5. Lien, Gudbrand D., 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(1), May.
    6. Shi, Tian & Gill, Roderic, 2005. "Developing effective policies for the sustainable development of ecological agriculture in China: the case study of Jinshan County with a systems dynamics model," Ecological Economics, Elsevier, vol. 53(2), pages 223-246, April.
    7. Barraquand, F. & Martinet, V., 2011. "Biological conservation in dynamic agricultural landscapes: Effectiveness of public policies and trade-offs with agricultural production," Ecological Economics, Elsevier, vol. 70(5), pages 910-920, March.
    8. Doherty Jr., Paul F. & Marschall, Elizabeth A. & Grubb Jr., Thomas C., 1999. "Balancing conservation and economic gain: a dynamic programming approach," Ecological Economics, Elsevier, vol. 29(3), pages 349-358, June.
    9. 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.
    10. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics, Blackwell, vol. 27(1), pages 75-83, May.
    11. Lewis, David J. & Plantinga, Andrew J. & Nelson, Erik & Polasky, Stephen, 2011. "The efficiency of voluntary incentive policies for preventing biodiversity loss," Resource and Energy Economics, Elsevier, vol. 33(1), pages 192-211, January.
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    More about this item

    Keywords

    Biodiversity; Land-use; Bio-economics; Modeling; Cost-effectiveness; Optimality; Scenarios; Birds.;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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