Investment in farming under uncertainty and decoupled support: a real options approach
نویسندگان
چکیده
Abstract We develop a real options model to assess the impact of decoupled payments on agricultural investments. The context that we are addressing is one set by Common Agricultural Policy where farmers eligible for as long their land properly maintained. show non-neutral with respect choices concerning timing and capacity. find they (i) induce earlier investment lower productive capacity; (ii) increase value option associated (iii) reduce volatility farm income. A numerical exercise complements our theoretical analysis.
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ژورنال
عنوان ژورنال: European Review of Agricultural Economics
سال: 2022
ISSN: ['0165-1587', '1464-3618']
DOI: https://doi.org/10.1093/erae/jbac002