This paper analyses the impact of a tradable production quota on firm entry and exit in the agricultural industry. We develop a dynamic stochastic equilibrium framework considering that a release of production capacity by exiting firms affects the investment options for entrants. Firms'...

The increasing demand for agricultural commodities for food and energy purposes has led to intensified agricultural production. This trend may manifest in agricultural compositions and landscape configurations that can have mixed and adverse impacts on the provision of ecosystem services. We...