An empirical assessment of the agricultural biodiversity economic role in developing countries

This paper empirically investigates the existence of a potential trade-off between farmersˈ livelihood enhancement and the conservation of the agricultural biodiversity. We present an endogenous switching regression model assessed on the 2009/2010 Uganda agricultural survey. Our econometric results stress the fact that the preservation of local crop landraces and the associated agro-biodiversity is a fundamental asset that allows farmers, in different agro-ecological zones, to gain higher profits than intensive modern varieties adopters. Increasing the level of intensification, without considering the local landraces comparative advantages, determines the depletion of production-supporting ecosystem services that help to tackle extreme climatic shocks and supply significant option values. Agricultural modernization policies, which historically concentrated on subsidies to intensification, should focus on the sustainable development of traditional local species. This could ensure a win-win strategy in terms of agricultural productivity increases and biodiversity conservation