Crop biodiversity, risk management and the implications of agricultural assistance

Salvatore Di Falco, Charles Perrings

Research output: Contribution to journalArticle

108 Citations (Scopus)

Abstract

This paper presents a theoretical and empirical analysis of the impact of financial assistance to farms on crop biodiversity in an uncertain setting. The findings reveal that risk aversion is an important driving force for crop biodiversity conservation. Risk-averse farmers can hedge against the uncertainty they face by allocating land to different crop species. However, policies intended to stabilize revenues by supporting particular species may alter this link by delinking crop biodiversity from the management of revenues risk.

Original languageEnglish (US)
Pages (from-to)459-466
Number of pages8
JournalEcological Economics
Volume55
Issue number4
DOIs
StatePublished - Dec 1 2005
Externally publishedYes

Fingerprint

risk management
biodiversity
crop
crops
income
empirical analysis
economic impact
uncertainty
farm
farmers
farms
Risk management
Crops
Biodiversity
Revenue

Keywords

  • Agricultural assistance
  • Crop biodiversity
  • Risk management

ASJC Scopus subject areas

  • Ecology, Evolution, Behavior and Systematics
  • Economics and Econometrics
  • Ecology

Cite this

Crop biodiversity, risk management and the implications of agricultural assistance. / Di Falco, Salvatore; Perrings, Charles.

In: Ecological Economics, Vol. 55, No. 4, 01.12.2005, p. 459-466.

Research output: Contribution to journalArticle

@article{0b0b98dba18d4dc1bc6575e11719319d,
title = "Crop biodiversity, risk management and the implications of agricultural assistance",
abstract = "This paper presents a theoretical and empirical analysis of the impact of financial assistance to farms on crop biodiversity in an uncertain setting. The findings reveal that risk aversion is an important driving force for crop biodiversity conservation. Risk-averse farmers can hedge against the uncertainty they face by allocating land to different crop species. However, policies intended to stabilize revenues by supporting particular species may alter this link by delinking crop biodiversity from the management of revenues risk.",
keywords = "Agricultural assistance, Crop biodiversity, Risk management",
author = "{Di Falco}, Salvatore and Charles Perrings",
year = "2005",
month = "12",
day = "1",
doi = "10.1016/j.ecolecon.2004.12.005",
language = "English (US)",
volume = "55",
pages = "459--466",
journal = "Ecological Economics",
issn = "0921-8009",
publisher = "Elsevier",
number = "4",

}

TY - JOUR

T1 - Crop biodiversity, risk management and the implications of agricultural assistance

AU - Di Falco, Salvatore

AU - Perrings, Charles

PY - 2005/12/1

Y1 - 2005/12/1

N2 - This paper presents a theoretical and empirical analysis of the impact of financial assistance to farms on crop biodiversity in an uncertain setting. The findings reveal that risk aversion is an important driving force for crop biodiversity conservation. Risk-averse farmers can hedge against the uncertainty they face by allocating land to different crop species. However, policies intended to stabilize revenues by supporting particular species may alter this link by delinking crop biodiversity from the management of revenues risk.

AB - This paper presents a theoretical and empirical analysis of the impact of financial assistance to farms on crop biodiversity in an uncertain setting. The findings reveal that risk aversion is an important driving force for crop biodiversity conservation. Risk-averse farmers can hedge against the uncertainty they face by allocating land to different crop species. However, policies intended to stabilize revenues by supporting particular species may alter this link by delinking crop biodiversity from the management of revenues risk.

KW - Agricultural assistance

KW - Crop biodiversity

KW - Risk management

UR - http://www.scopus.com/inward/record.url?scp=27644454120&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=27644454120&partnerID=8YFLogxK

U2 - 10.1016/j.ecolecon.2004.12.005

DO - 10.1016/j.ecolecon.2004.12.005

M3 - Article

VL - 55

SP - 459

EP - 466

JO - Ecological Economics

JF - Ecological Economics

SN - 0921-8009

IS - 4

ER -