|
EconStor >
Leuphana Universität Lüneburg >
Institut für Volkswirtschaftslehre, Leuphana Universität Lüneburg >
Working Paper Series in Economics, Leuphana Universität Lüneburg >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/28179
|
| | |
| Title: | | Agro-biodiversity as natural insurance and the development of financial insurance markets  |
| Authors: | | Baumgärtner, Stefan Quaas, Martin F. |
| Issue Date: | | 2007 |
| Series/Report no.: | | University of Lüneburg working paper series in economics 61 |
| Abstract: | | Agro-biodiversity can provide natural insurance to risk averse farmers. We employ a conceptual ecological-economic model to analyze the choice of agrobiodiversity by risk averse farmers who have access to financial insurance. We study the implications for individually and socially optimal agro-ecosystem management and policy design when on-farm agro-biodiversity, through ecosystem processes at higher hierarchical levels, generates a positive externality on other farmers. We show that for the individual farmer natural insurance from agro-biodiversty and financial insurance are substitutes. While an improved access to financial insurance leads to lower agro-biodiversity, the e_ects on the market failure problem (due to the external benefits of on-farm agro-biodiversity) and on welfare are determined by properties of the agro-ecosystem and agro-biodiversity’s external benefits. We derive a specific condition on agro-ecosystem functioning under which, if financial insurance becomes more accessible, welfare in the absence of regulation increases or decreases. |
| JEL: | | Q1 Q57 H23 D62 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Paper Series in Economics, Leuphana Universität Lüneburg
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/28179
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|