Agricultural Trade, Biodiversity Effects and Food Price Volatility

Cecilia Bellora and Jean-Marc Bourgeon

Abstract: Production risks in agriculture due to biotic elements such as pests create biodiversity effects that impede productivity. Pesticides reduce these effects but are damaging for the environment and human health. When regulating farming practices, governments weigh these side-effects against the competitiveness of their agriculture. In a Ricardian two-country setup, we show that free trade results in an incomplete production specialization, that restrictions on pesticides are generally more stringent than under autarky and that trade increases the price volatility of crops produced by both countries and some of the specialized crops. If biodiversity effects are large, the price volatility of all crops is larger than under autarky.

Keywords: agricultural trade; food prices; agrobiodiversity; pesticides (search for similar items in EconPapers)
Date: 2014-07-29
New Economics Papers: this item is included in nep-agr, nep-env and nep-int
Note: View the original document on HAL open archive server: https://hal.science/hal-01052971
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Related works:
Working Paper: Food trade, Biodiversity Effects and Price Volatility (2016)
Working Paper: Agricultural Trade, Biodiversity Effects and Food Price Volatility (2015)
Working Paper: Agricultural Trade, Biodiversity Effects and Food Price Volatility (2015)
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