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How does the economic risk aversion affect biodiversity?

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  • Lauriane MOUYSSET
  • Luc DOYEN
  • Fréderic JIGUET

Abstract

The present paper analyses the role played by risk aversion in the reconciling of agricultural income and biodiversity. A bio-economic mode which articulates bird community dynamics and representative farmers selecting land uses within an uncertain macro-economic context is developed. It is spatialized and calibrated at a regional scale for France through national databases. The impact of risk aversion is assessed on economic, agricultural and ecological outputs through projections at the 2050 horizon. A high enough aversion proves sufficient to promote global bio-economic performance and multi-functional agriculture. This occurs through a diversification mechanism on regional land-uses. Spatial disparities however suggest that public incentives could be necessary to reinforce the diversification and bio-economic effectiveness.

Suggested Citation

  • Lauriane MOUYSSET & Luc DOYEN & Fréderic JIGUET, 2012. "How does the economic risk aversion affect biodiversity?," Cahiers du GREThA (2007-2019) 2012-03, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2012-03
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    File URL: http://cahiersdugretha.u-bordeaux.fr/2012/2012-03.pdf
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    Cited by:

    1. Ilaria Brunetti & Mabel Tidball & Denis Couvet, 2018. "Relationship between biodiversity and agricultural production," Working Papers halshs-01936005, HAL.
    2. Lauriane MOUYSSET & Luc DOYEN & Jean-Christophe PEREAU & Fréderic JIGUET, 2013. "A double benefit of biodiversity in agriculture," Cahiers du GREThA (2007-2019) 2013-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Ilaria Brunetti & Mabel Tidball & Denis Couvet, 2018. "Relationship between biodiversity and agricultural production," CEE-M Working Papers halshs-01936005, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    4. Sabatier, R. & Mouysset, L., 2018. "A robustness-based viewpoint on the production-ecology trade-off in agroecosystems," Agricultural Systems, Elsevier, vol. 167(C), pages 1-9.
    5. Finger, Robert & Buchmann, Nina, 2014. "An ecological economic assessment of risk reducing effects of species diversity in grassland production," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182681, European Association of Agricultural Economists.
    6. Mouysset, L., 2014. "Agricultural public policy: Green or sustainable?," Ecological Economics, Elsevier, vol. 102(C), pages 15-23.
    7. Ilaria Brunetti & Mabel Tidball & Denis Couvet, 2018. "Relationship between biodiversity and agricultural production," Working Papers hal-02791015, HAL.
    8. Helena Kahiluoto & Janne Kaseva, 2016. "No Evidence of Trade-Off between Farm Efficiency and Resilience: Dependence of Resource-Use Efficiency on Land-Use Diversity," PLOS ONE, Public Library of Science, vol. 11(9), pages 1-16, September.
    9. Finger, Robert & Buchmann, Nina, 2015. "An ecological economic assessment of risk-reducing effects of species diversity in managed grasslands," Ecological Economics, Elsevier, vol. 110(C), pages 89-97.
    10. Violaine Tarizzo & Eric Tromeur & Olivier Thébaud & Richard Little & Sarah Jennings & Luc Doyen, 2018. "Risk averse policies foster bio-economic sustainability in mixed fisheries," Cahiers du GREThA (2007-2019) 2018-07, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Ny Andraina Andriamanantena & Charly Gaufreteau & Jean-Sauveur Ay & Luc Doyen, 2021. "Ecological-economic scenarios of land-use for biodiversity and ecosystem services in the New Aquitaine region," Bordeaux Economics Working Papers 2021-18, Bordeaux School of Economics (BSE).
    12. Lauriane MOUYSSET & Claire RAIS ASSA & Jean-Sauveur AY & Frédéric JIGUET & Romain LORRILIERE & Luc DOYEN, 2017. "A bio-economic analysis for land-uses and biodiversity in metropolitan France," Cahiers du GREThA (2007-2019) 2017-05, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

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    More about this item

    Keywords

    Agriculture; Aversion; Bio-economic modeling; Bird; Biodiversity; Diversification; Public good; Spatial;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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