@article{Tzouramani:51079,
      recid = {51079},
      author = {Tzouramani, Irene and Liontakis, Angelos E. and Sintori,  Alexandra and Alexopoulos, George},
      title = {Policy implementations for organic agriculture: A real  options approach},
      address = {2009-04-01},
      number = {351-2016-17997},
      pages = {14},
      month = {Apr},
      year = {2009},
      abstract = {Organic farming has experienced a vast increase within the  EU, despite the fact that it implies greater risk and  uncertainty than that of conventional farming. This is the  result of the increased environmental concern and the  rising demand for quality food, which led to the  implementation of the organic policy scheme. Nevertheless,  the production of organic fruits, including cherries, is  still limited in the EU. Farmers will adopt this  alternative farming system only if the support provided by  the existing policy regime out weights the increased risk  and uncertainty. This study explores the effectiveness of  the current policy measures for the production of organic  cherries in Greece, using the real options methodology. The  framework of real options analysis is an appropriate form  of analysis so as to examine the investment’s profitability  under risk and uncertainty and assess the economic  incentives offered to organic farmers. The results indicate  that the economic incentives provided by the existing  policy regime, compensate for the risk and the uncertainty  that farmers are undertaking. Furthermore, this study  reveals that the profitability of the economic activity  explored, lies mainly on the subsidies organic farmers  receive.},
      url = {http://ageconsearch.umn.edu/record/51079},
      doi = {https://doi.org/10.22004/ag.econ.51079},
}