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How does the economic risk aversion affect biodiversity?

Lauriane Mouysset, Luc Doyen () and Fréderic Jiguet

Cahiers du GREThA (2007-2019) from Groupe de Recherche en Economie Théorique et Appliquée (GREThA)

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.

Keywords: Agriculture; Aversion; Bio-economic modeling; Bird; Biodiversity; Diversification; Public good; Spatial (search for similar items in EconPapers)
JEL-codes: Q15 Q20 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-agr and nep-env
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