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Agricultural Trade, Biodiversity Effects and Food Price Volatility

Author

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  • Cecilia Bellora

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

  • Jean-Marc Bourgeon

    (X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique, ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

Abstract

Production risks in agriculture due to biotic elements such as pests create biodiversity effects that impede productivity. Pesticides reduce these effects but are damaging for the environment and human health. When regulating farming practices, governments weigh these side-effects against the competitiveness of their agriculture. In a Ricardian two-country setup, we show that free trade results in an incomplete production specialization, that restrictions on pesticides are generally more stringent than under autarky and that trade increases the price volatility of crops produced by both countries and some of the specialized crops. If biodiversity effects are large, the price volatility of all crops is larger than under autarky.

Suggested Citation

  • Cecilia Bellora & Jean-Marc Bourgeon, 2014. "Agricultural Trade, Biodiversity Effects and Food Price Volatility," Working Papers hal-01052971, HAL.
    • Handle: RePEc:hal:wpaper:hal-01052971
    Note: View the original document on HAL open archive server: https://hal.science/hal-01052971
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    References listed on IDEAS

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    1. Cecilia Bellora & Élodie Blanc & Jean-Marc Bourgeon & Eric Strobl, 2018. "Estimating the Impact of Crop Diversity on Agricultural Productivity in South Africa," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 185-215, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    agricultural trade; food prices; agrobiodiversity; pesticides;
    All these keywords.

    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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