Davide De Mauro
The global agricultural sector has been undergoing change at an unprecedented rate in response to population growth and rising demand. Half of the world’s habitable land is currently used for agriculture, providing jobs to around 1 billion people. At the same time, agriculture is one of the largest contributors to environmental pollution (“externalities”).
These “environmental externalities” generate tangible economic costs to society that are currently not reflected in agricultural commodity prices. Some of the most relevant (societal) economic costs caused by the environmental impact of agricultural activities include human health expenditures, pollution abatement and remediation costs, and loss of ecosystem services.
This article will explain how companies can turn these environmental challenges into opportunities. It tackles the challenge of how to calculate the monetary value of those benefits, and what it means in practice for each market player.