Conventional Agriculture-Based Economy versus Organic Agriculture-Based Economy. Comparative Static Analysis Model

Economie basée sur l'Agriculture Conventionnelle versus Economie basée sur l'Agriculture Biologique. Modèle d'Analyse en Statique Comparative

Nacim Mohand (), Abdelhakim Hammoudi () and Mohammed Radjef ()
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Nacim Mohand: LaMOS (Modélisation et Optimisation des Systèmes), Faculté de Technologie, Université de Bejaia, 06006, Bejaia, Algérie
Abdelhakim Hammoudi: UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Mohammed Radjef: LaMOS (Modélisation et Optimisation des Systèmes), Faculté de Technologie, Université de Bejaia, 06006, Bejaia, Algérie

Working Papers from HAL

Abstract: The transition from conventional to organic farming has become a central issue for sustainable development, offering significant economic and social benefits. However, this decision generates complex strategic challenges. In this study, we adopt an approach based on an industrial organization model to explore these challenges and analyze the factors influencing this decision. The model takes into account the specificity of the two agricultural models in terms of yield and production and distribution costs, and highlights the strategic interactions between the decisions of the different actors in the agricultural sector. The results of this work reveal that subsidies play a decisive role in promoting the transition to organic farming. Moreover, when the demand for quality products is high, this agricultural model can generate higher overall welfare than its conventional counterpart. However, in the presence of a high proliferation of pests, organic farming may lose its economic advantage over conventional farming.

Keywords: Sécurité sanitaire; Limite Maximal de Résidus; marchés spots; producteurs et détaillants; subventions; transition; Agriculture biologique (search for similar items in EconPapers)
Date: 2025-10-15
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-05316679v1
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