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A double benefit of biodiversity in agriculture

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

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.

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Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2013-04.

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Date of creation: 2013
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Handle: RePEc:grt:wpegrt:2013-04
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  1. Lewis, David J. & Plantinga, Andrew J. & Nelson, Erik & Polasky, Stephen, 2009. "The Efficiency of Voluntary Incentive Policies for Preventing Biodiversity Loss," Staff Paper Series 533, University of Wisconsin, Agricultural and Applied Economics.
  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. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics, Blackwell, vol. 27(1), pages 75-83, May.
  8. 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.
  9. 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.
  10. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(1), May.
  11. 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.
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