| In this paper we argue that the loss of bio-diversity hould be of concern for farmers, though it seems to be of little or no concern to them at the moment. As diversity is a component of nature that controls the growth of pests, a loss of bio-diversity means increased exposure to pests, danger of crop failures and, in the long run, lower average yields and profits. So far farmers buy costly pesticides for compensating the reduction of bio-diversity. We argue that institutional problems are the reason why farmers are not concerned with bio-diversity, and show that under pure private property rights farmers have interest in pesticides and not in bio-diversity as a measure of crop protect because they have perhaps to devote land to the natural eco-system. In... |
