IDEAS home Printed from https://ideas.repec.org/p/ags/eaae11/114269.html
   My bibliography  Save this paper

Estimating the Resilience Value of Soil Biodiversity in Agriculture: A Stochastic Simulation Approach

Author

Listed:
  • Brady, Mark
  • Cong, RongGang

Abstract

Characteristic of ecosystems is that different organisms can have similar functions and hence provide similar ecosystem services. Consequently functional diversity can maintain the rate of services despite environmental fluctuations. In this paper we present a method for estimating the resilience value of biodiversity. Central to a resilience perspective on biological conservation is consideration of uncertainty about the future. To do this we propose stochastic simulation as a practical approach for valuing resilience due to the ease of incorporating uncertain variables. We demonstrate the approach by developing a stochastic simulation model for valuing soil biodiversity in agriculture. Our results indicate that the long time frames involved in soil processes create a significant incentive to perpetuate unsustainable farming systems and hence there might be a need for policy intervention. However we also show that investing in soil biodiversity conservation can provide significant risk diversification benefits that are not accounted for in a deterministic evaluation. These benefits can be estimated through stochastic simulation.

Suggested Citation

  • Brady, Mark & Cong, RongGang, 2011. "Estimating the Resilience Value of Soil Biodiversity in Agriculture: A Stochastic Simulation Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114269, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114269
    DOI: 10.22004/ag.econ.114269
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/114269/files/Brady_Mark_189.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.114269?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lynam, John K. & Herdt, Robert W., 1989. "Sense and sustainability: Sustainability as an objective in international agricultural research," Agricultural Economics, Blackwell, vol. 3(4), pages 381-398, December.
    2. Lien, Gudbrand & Brian Hardaker, J. & Flaten, Ola, 2007. "Risk and economic sustainability of crop farming systems," Agricultural Systems, Elsevier, vol. 94(2), pages 541-552, May.
    3. Swanson, Timothy M, 1994. "The Economics of Extinction Revisited and Revised: A Generalised Framework for the Analysis of the Problems of Endangered Species and Biodiversity Losses," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 800-821, Supplemen.
    4. Timothy M. Swanson, 1994. "The Economics of Extinction Revisited and Revised," Palgrave Macmillan Books, in: The International Regulation of Extinction, chapter 3, pages 45-76, Palgrave Macmillan.
    5. Barrios, Edmundo, 2007. "Soil biota, ecosystem services and land productivity," Ecological Economics, Elsevier, vol. 64(2), pages 269-285, December.
    6. Hansen, J. W. & Jones, J. W., 1996. "A systems framework for characterizing farm sustainability," Agricultural Systems, Elsevier, vol. 51(2), pages 185-201, June.
    7. Jean-Paul Chavas, 2008. "On the economics of agricultural production ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(4), pages 365-380, December.
    8. Alan P. Ker & Keith Coble, 2003. "Modeling Conditional Yield Densities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 291-304.
    9. John K. Lynam & Robert W. Herdt, 1989. "Sense and Sustainability: Sustainability as an Objective in International Agricultural Research," Agricultural Economics, International Association of Agricultural Economists, vol. 3(4), pages 381-398, December.
    10. Greiner, Romy & Patterson, Louisa & Miller, Owen, 2009. "Motivations, risk perceptions and adoption of conservation practices by farmers," Agricultural Systems, Elsevier, vol. 99(2-3), pages 86-104, February.
    11. Carl H. Nelson & Paul V. Preckel, 1989. "The Conditional Beta Distribution as a Stochastic Production Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 370-378.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Tobon Orozco, David & Molina Guerra, Carlos & Vargas Cano, John Harvey, 2016. "Extent of Expected Pigouvian Taxes and Permits for Environmental Services in a General Equilibrium Model with a natural capital constraint," Borradores Departamento de Economía 15258, Universidad de Antioquia, CIE.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vitória Toffolo Luiz & Rafael Araújo Nacimento & Vanessa Theodoro Rezende & Taynara Freitas Avelar de Almeida & Juliana Vieira Paz & Biagio Fernando Giannetti & Augusto Hauber Gameiro, 2023. "Sustainability Assessment of Intensification Levels of Brazilian Smallholder Integrated Dairy-Crop Production Systems: An Emergy and Economic-Based Decision Approach," Sustainability, MDPI, vol. 15(5), pages 1-20, March.
    2. Foudi, Sébastien, 2012. "The role of farmers' property rights in soil ecosystem services conservation," Ecological Economics, Elsevier, vol. 83(C), pages 90-96.
    3. Sébastien Foudi, 2012. "Exploitation of soil biota ecosystem services in agriculture: a bioeconomic approach," Working Papers 2012-02, BC3.
    4. Glendining, M.J. & Dailey, A.G. & Williams, A.G. & Evert, F.K. van & Goulding, K.W.T. & Whitmore, A.P., 2009. "Is it possible to increase the sustainability of arable and ruminant agriculture by reducing inputs?," Agricultural Systems, Elsevier, vol. 99(2-3), pages 117-125, February.
    5. Lien, Gudbrand & Brian Hardaker, J. & Flaten, Ola, 2007. "Risk and economic sustainability of crop farming systems," Agricultural Systems, Elsevier, vol. 94(2), pages 541-552, May.
    6. Marggraf, R., 2001. "Wie effizient ist die Integration von naturschutzbezogenen Handelsbeschränkungen in die Regeln der WTO?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 37.
    7. Jesse B. Tack & David Ubilava, 2015. "Climate and agricultural risk: measuring the effect of ENSO on U.S. crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 245-257, March.
    8. Jesse Tack & David Ubilava, 2013. "The effect of El Niño Southern Oscillation on U.S. corn production and downside risk," Climatic Change, Springer, vol. 121(4), pages 689-700, December.
    9. van den Bergh, Jeroen C.J.M., 2008. "Optimal diversity: Increasing returns versus recombinant innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 565-580, December.
    10. Barbier, E. & Bulte, E.H., 2004. "Introduction to the symposium on trade, renewable resources and biodiversity," Other publications TiSEM 23d4672f-7b59-47f8-b81e-c, Tilburg University, School of Economics and Management.
    11. Eppink, Florian V. & van den Bergh, Jeroen C.J.M., 2007. "Ecological theories and indicators in economic models of biodiversity loss and conservation: A critical review," Ecological Economics, Elsevier, vol. 61(2-3), pages 284-293, March.
    12. Ramani, Shyama V. & Thutupalli, Ajay, 2015. "Emergence of controversy in technology transitions: Green Revolution and Bt cotton in India," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 198-212.
    13. Leroux, Anke D. & Creedy, John, 2007. "Optimal land conversion and growth with uncertain biodiversity costs," Ecological Economics, Elsevier, vol. 61(2-3), pages 542-549, March.
    14. Bulte, E.H. & Barbier, E., 2005. "Trade and renewable resources in a second best world : An overview," Other publications TiSEM b32c301d-ca5d-47bb-ae5a-7, Tilburg University, School of Economics and Management.
    15. Kumar, Praduman & Mittal, Surabhi, 2006. "Agricultural Productivity Trends in India: Sustainability Issues," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 19(Conferenc).
    16. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    17. Ramirez, Octavio A. & Carpio, Carlos E. & Rejesus, Roderick M., 2011. "Can Crop Insurance Premiums Be Reliably Estimated?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-14, April.
    18. A Ford Ramsey, 2020. "Probability Distributions of Crop Yields: A Bayesian Spatial Quantile Regression Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 220-239, January.
    19. Alexander, Robert R. & Shields, David W., 1999. "Bioeconomic Modelling Of Endangered Species Conservation," Discussion Papers in Natural Resource and Environmental Economics 23692, Massey University, Centre for Applied Economics and Policy Studies.
    20. Jesse Tack & Ardian Harri & Keith Coble, 2012. "More than Mean Effects: Modeling the Effect of Climate on the Higher Order Moments of Crop Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1037-1054.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    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:ags:eaae11:114269. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.