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Séminaire
Arnaud Dragicevic
(Professor at Chulalongkorn University [Faculty of Economics]
Towards Sustainable Agriculture: Implementing a Market for Payments for Environmental Services in Agri-Food Systems
co-authors: Serge Garcia (Inrae-Beta) and Jean-Christophe Pereau (BSE)
Abstract
This study evaluates the impact of a Payments for Environmental Services (PES) market on the sustainability of an agri-food supply chain. It employs a variational inequality approach within a multi-criteria decision-making framework. The theoretical findings are validated through numerical simulations using a neural network-based machine learning algorithm. They conclusively demonstrate the potential to not only achieve but also surpass objectives related to carbon and biodiversity neutrality targets. This study underscores the effectiveness of combining market valorisation of environmental services with government subsidies for ecological transitions as a powerful strategy to significantly reduce the global ecological footprint. It also demonstrates the absence of crowding-out effects between public and private agents. It shows that actors within the supply chain are inclined to intensify their offsets towards achieving environmental neutrality if they are initially compensated for their efforts to mitigate their environmental impacts.
– Séminaire organisé par le programme 2 / BSE –