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This article aims to show that if the farm sample under consideration is characterized by significant heterogeneity, recovering output‐specific input uses or modeling farm‐level input uses may be more complicated than previously recognized. The article theoretically investigates the problems implied by farm heterogeneity in input allocation equations and multicrop econometric models, proposes an empirically tractable solution for overcoming these problems, and assesses the empirical relevance of the theoretically identified problems. The results demonstrate that heterogeneity matters, but that the revealed heterogeneity bias has a limited impact on the empirical results.

Working Paper SMART -LERECO N°13.06 Les Working Papers SMART-LERECO ont pour vocation de diffuser les recherches conduites au sein des unités SMART et LERECO dans une forme préliminaire permettant la discussion et avant publication définitive. Selon les cas, il s'agit de travaux qui ont été acceptés ou ont déjà fait l'objet d'une présentation lors d'une conférence scientifique nationale ou internationale, qui ont été soumis pour publication dans une revue académique à comité de lecture, ou encore qui constituent un chapitre d'ouvrage académique. Bien que non revus par les pairs, chaque working paper a fait l'objet d'une relecture interne par un des scientifiques de SMART ou du LERECO et par l'un des deux éditeurs de la série. Les Working Papers SMART-LERECO n'engagent cependant que leurs auteurs. The SMART-LERECO Working Papers are meant to promote discussion by disseminating the research of the SMART and LERECO members in a preliminary form and before their final publication. They may be papers which have been accepted or already presented in a national or international scientific conference, articles which have been submitted to a peer-reviewed academic journal, or chapters of an academic book. While not peer-reviewed, each of them has been read over by one of the scientists of SMART or LERECO and by one of the two editors of the series. However, the views expressed in the SMART-LERECO Working Papers are solely those of their authors. Téléphone / Phone: +33 (0)2 23 48 54 01 Fax: +33 (0)2 23 48 53 80 Les Working Papers SMART-LERECO n'engagent que leurs auteurs. The views expressed in the SMART-LERECO Working Papers are solely those of their authors 1 Working Paper SMART -LERECO N°13-06 Influence of environmental policies on farmland prices in the Bretagne region of France AbstractThe Bretagne region is an agricultural area located in the north-west of France. In addition to urban pressure, the competition for farmland is enhanced by strong environmental regulations and incentives. The objective of this paper is to study the determinants of farmland prices and especially the effects of environmental regulations to explain the spatial disparities observed in Bretagne. This paper mainly focuses on environmental policies which are intended to reduce the agricultural pollution of water with nitrates. Several environmental regulations have been implemented in the Bretagne region, which resulted in a complex zoning system with specific measures. To account for this local characteristic, we use the hedonic pricing model and take into account the potential spatial dependencies between farmland prices. For empirical application, we use a dataset of individual transactions in Bretagne from 2007 to 2010. The estimation results show an increase or a decrease in farmland prices in environmentally sensitive areas depending on the types of regulations applied in these areas.The results also emphasize the importance of spatial interaction in the farmland market. Impacts des politiques environnementales sur le prix des terres agr...

Previous studies on the productive value of biodiversity have emphasised that crop diversity increases crop yields. Here, we focus on the management of crop biodiversity for wheat, winter barley and rapeseed productions. We introduce productive capacity of biodiversity into a structural dynamic model with supply, variable input demand and acreage functions. We estimate the model for a sample of French farms between 2007 and 2012. We highlight that biodiversity indicators influence the yield of crops and variable input uses. We find evidence that farmers manage their acreage to benefit from the productive capacity of crop biodiversity. Acknowledgements:The authors would like to thank the three anonymous reviewers for their helpful and constructive comments and Pierre Dupraz for helpful suggestions on earlier drafts of the paper. This research was funded by the EU's Horizon 2020 program under grant agreement n°633838 (PROVIDE project, http://www.provide-project.eu/). This work does not necessarily reflect the view of the EU and in no way anticipates the Commission's future policy.