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Agricultural Trade, Biodiversity Effects and Food Price Volatility

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  • Cecilia Bellora

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Jean-Marc Bourgeon

    () (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech, Department of Economics, Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique)

Abstract

We examine the importance of production risks in agriculture due to biotic elements such as pests in determining the pattern of trade and the distribution of prices in a Ricardian two-country setup. These elements create biodiversity eff ects that result in an incomplete specialization at the free trade equilibrium. Their influence on idiosyncratic production risks evolves depending on the countries' openness to trade. Pesticides allow these eff ects to diminish but they are damaging for the environment and human health. When regulating farming practices, governments have to counterbalance these side-eff ects with the competitiveness of their agricultural sector on international markets. Nevertheless, restrictions on pesticides under free trade are generally more stringent than under autarky.

Suggested Citation

  • Cecilia Bellora & Jean-Marc Bourgeon, 2014. "Agricultural Trade, Biodiversity Effects and Food Price Volatility," Working Papers hal-00969083, HAL.
  • Handle: RePEc:hal:wpaper:hal-00969083
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00969083
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    1. repec:nbr:nberch:13942 is not listed on IDEAS
    2. Cecilia Bellora & Élodie Blanc & Jean-Marc Bourgeon & Eric Strobl, 2017. "Estimating the Impact of Crop Diversity on Agricultural Productivity in South Africa," NBER Chapters,in: Understanding Productivity Growth in Agriculture National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    agricultural trade; food prices; agrobiodiversity; pesticides;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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