IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v65y2014i1p87-111.html
   My bibliography  Save this article

The Influence of Biodiversity Provision on the Cost Structure of Swedish Dairy Farming

Author

Listed:
  • Joakim Gullstrand
  • Rembert Blander
  • Staffan Waldo

Abstract

type="main" xml:id="jage12028-abs-0001"> Multi-functionality and the provision of eco-system services are politically highly prioritised aspects of farming. This study uses a Symmetric Generalised McFadden cost function to analyze the relationship between costs of production and the provision of biodiversity for Swedish milk farms. Biodiversity indicators are based on the number of valuable plant species present at the farm and are modeled as an output in the cost function. The results show that the marginal cost of biodiversity increases with higher provision, and that an increased provision of biodiversity also increases the costs of market commodities such as milk and beef. The upward slope of the marginal cost of biodiversity and its competitive relationship with market goods questions the efficiency of support schemes based on voluntary programmes with a flat-rate per hectare compensation. Instead, the results support targeted environmental policy schemes with zonings and/or the use of biodiversity indicators.

Suggested Citation

  • Joakim Gullstrand & Rembert Blander & Staffan Waldo, 2014. "The Influence of Biodiversity Provision on the Cost Structure of Swedish Dairy Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(1), pages 87-111, January.
    • Handle: RePEc:bla:jageco:v:65:y:2014:i:1:p:87-111
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jage.2014.65.issue-1
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dalheimer, Bernhard & Parikoglou, Iordanis & Brambach, Fabian & Yanita, Mirawati & Kreft, Holger & Brümmer, Bernhard, 2024. "On the palm oil-biodiversity trade-off: Environmental performance of smallholder producers," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    2. Zdenka ZAKOVA KROUPOVA, 2016. "Profitability development of Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(6), pages 269-279.
    3. Lambini, Cosmas Kombat & Nguyen, Trung Thanh & Abildtrup, Jens & Pham, Van Dien & Tenhunen, John & Garcia, Serge, 2018. "Are Ecosystem Services Complementary or Competitive? An Econometric Analysis of Cost Functions of Private Forests in Vietnam," Ecological Economics, Elsevier, vol. 147(C), pages 343-352.
    4. Tsakiridis, Andreas & Hanrahan, Kevin & Breen, James & Wallace, Michael & O’Donoghuea, Cathal, 2016. "Feed substitution and economies of scale in Irish beef production systems," 149th Seminar, October 27-28, 2016, Rennes, France 244769, European Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:bla:jageco:v:65:y:2014:i:1:p:87-111. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.