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Evaluating basis for a targeted environmental policy: Do the opportunity costs of enhancing biodiversity differ between organic and conventional farms?

Huhtala, Anni and Sipiläinen, Timo (2010) Evaluating basis for a targeted environmental policy: Do the opportunity costs of enhancing biodiversity differ between organic and conventional farms? Paper at: Economic instruments to enhance the conservation and sustainable use of biodiversity :11th international BIOECON conference, Venice, September 21st-22nd, 2009.

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Online at: http://www.bioecon.ucl.ac.uk/11th_2009/Huhtala.pdf

Summary

For policy making, it is important to identify the types of farms that are most efficient in enhancement of environmental quality, e.g., conservation of biodiversity. Attractiveness of conservation of biodiversity depends crucially on the opportunity costs of conservation. We use a crop diversity index as an indicator of environmental output to compare effciency of conventional and organic crop farms. Non-parametric technical efficiency scores are estimated applying data envelopment analysis on a sample of Finnish crop farms for 1994-2001. We also estimate opportunity costs, or shadow values, of producing crop diversity. According to our results, there is variation in shadow values of crop diversity between the farms and technology adopted. This information provides basis for design of tailored, cost effective policy instruments such as auctions for conservation payments.


EPrint Type:Conference paper, poster, etc.
Type of presentation:Paper
Keywords:crop diversity, Shannon index, DEA, technical efficiency
Subjects: Environmental aspects
Research affiliation: Finland > MTT Agrifood Research
Deposited By: Koistinen, Riitta
ID Code:18239
Deposited On:07 Feb 2011 10:24
Last Modified:07 Feb 2011 10:24
Document Language:English
Status:Published
Refereed:Not peer-reviewed

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