Land sharing vs. land sparing for biodiversity: How agricultural markets make the difference
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We show that whether intensive or extensive farming is most beneficial to biodiversity
depends on the equilibrium of agricultural markets. With higher production costs, extensive
farming tends to be more beneficial to biodiversity than intensive farming, except when there
is a very high degree of convexity between biodiversity and yield. Extensive farming is
detrimental to consumers while its effect on agricultural producers is indeterminate. It has no
straightforward effect on food security, but could decrease the pressure on protected areas.
Additional demand f reinforces the preference for extensive farming, especially in the case of
animal feed.