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Crop biodiversity, risk management and the implications of agricultural assistance

Di Falco, Salvatore and Perrings, Charles (2005) Crop biodiversity, risk management and the implications of agricultural assistance. Ecological Economics, 55 (4). pp. 459-466. ISSN 0921-8009

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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.

Item Type: Article
Official URL: http://www.elsevier.com/wps/find/journaldescriptio...
Additional Information: © 2005 Elsevier B.V.
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor > HD100 Land Use
S Agriculture > S Agriculture (General)
Sets: Departments > Geography and Environment
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 06 May 2011 15:40
URL: http://eprints.lse.ac.uk/35967/

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