What is the value of agrobiodiversity in southern Europe?

This study explores how agrobiodiversity at both local and regional scales impacts farmland value across five Mediterranean countries in the EU. Previous literature has primarily addressed on-farm biodiversity and its effects on productivity and risk mitigation, yet the potential externalities of agrobiodiversity across neighboring farms remain underexplored. Using a cross-sectional Ricardian approach, we estimate the effects of agrobiodiversity, measured in terms of both crop richness and evenness, on long-term agricultural productivity. Our findings show significant non-linear relationships and substitution effects between local and regional agrobiodiversity, underscoring the need for regionally tailored biodiversity policies.