Epsilon Archive for Student Projects

Abstract

An increasing world population has led to a higher demand of food. The agricultural intensification and farm-specialization during the last decades has provided sufficient food but the accomplishment to do so has led to significant social and ecological externalities. One way of generating more resilient and high-yield harvests and at the same time mitigating externalities is through crop diversity. This thesis estimates a production function using a fixed-effects model to investigate if crop diversity is positively related to economic performance in areas of Sweden. The results show that there is a positive significant relationship between crop diversity and economic performance measured as growthrates between years of value added per hectare of land between the years 2009-2018. The results are relevant to policymakers and farmers who wants to implement crop diversity within different regions of Sweden.