A MAS model for optimizing the spatial aspects of livestock production and manure abatement

As a consequence of the EU Nitrates Directive many countries have developed policies to regulate manure production and manure emission on land. Farmers have three allocation options: spreading manure on own land, transporting manure to other farmers’ land and processing manure. To better understand the manure problem as an allocation problem a spatial mathematical programming multi-agent model has been developed. The model is applied for Flanders (Belgium), a highly concentrated livestock area. Using this model, policy alternatives and their cost efficiency can be evaluated. These simulations result in advice on location and type of manure processing and an indicator which creates transparency in the manure and processing market

Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model

We quantify the emergence of biofuel markets and its impact on U.S. and world agriculture for the coming decade using the multi-market multi-commodity international FAPRI model. The model incorporates the tradeoffs between biofuel, feed, and food production and consumption and international feedback effects of the emergence through world commodity prices and trade. We examine land allocation by type of crop, and pasture use for countries growing feedstock for ethanol (corn, sorghum, wheat, sugarcane, and other grains) and major crops competing with feedstock for land resources such as oilseeds. We shock the model with exogenous changes in ethanol demand, first in the United States, then in Brazil, China, EU, and India, and compute shock multipliers for land allocation decisions for crops and countries of interest. The multipliers show at the margin how sensitive land allocation is to the growing demand for ethanol. Land moves away from major crops and pasture competing for resources with feedstock crops. Because of the high U.S. tariff on ethanol, higher U.S. demand for ethanol translates into a U.S. ethanol production expansion. The latter has global effects on land allocation as higher coarse grains prices transmit worldwide. Changes in U.S. coarse grain prices also affect U.S. wheat and oilseeds prices, which are all transmitted to world markets. In contrast, expansion in Brazil ethanol use and production chiefly affects land used for sugarcane production in Brazil and to a lesser extent in other sugar-producing countries, but with small impact on other land uses in most countries. Keywords: Acreage, area, biofuel, corn, crops, ethanol, FAPRI model, feedstock, land, sugar, sugarcane. JEL Code: Q42 Q17 Q15ethanol; acreage; area; biofuel; corn; crops; FAPRI model; feedstock; land; sugar; sugarcane

Emission-Photosynthesis Imbalance and Climate Change:Forest Land under Intensified Uncertainty and Expected Utility Maximization

This paper introduces photosynthesis into the motion-equation of the atmospheric stock of carbon-dioxide as a counterpart endogenous factor to emissions of this principal greenhouse gas from lands occupied by humans. By doing so, the paper links the stock of atmospheric carbon-dioxide, hence climate-change and uncertainty, to the allocation of usable land to humans and forest. The public planners can control this allocation and, consequently, the atmospheric stock of carbon-dioxide, climate-change and future usable land by setting land-rates in accordance with use. The analysis considers two types of land-use for expected utility maximizing humans and derives the effects of the land-rates and photosynthesis’ efficiency on the size of the forest.Carbon Emissions; Photosynthesis; Climate-Change; Expected Utility; Land-Rates; Forest Size

Property rights imperfections and asset allocation: co-ownership in Bulgaria.

This paper analyzes how imperfections of property rights affect households’ allocation of assets using micro-survey data from Bulgaria. Co-ownership of assets is widespread in many countries due to inheritance. Central and Eastern Europe offers an interesting natural experiment to assess the effects of this type of property rights imperfection because of the asset restitution process in the 1990s. In Bulgaria, where co-ownership is very prominent and land is strongly fragmented, the land reform and inheritance legislation allows identifying the impact of co-ownership by taking advantage of a discontinuity created by a minimum plot size law. We find that land in co-ownership is more likely to be used by less efficient farm organizations or to be left abandoned, and that it is related to significant welfare losses. The paper hence provides evidence of sub-optimal land allocation following a privatization that established formal but imperfect property rightsProperty rights; Asset allocation; Land markets;

Regional asymmetries in farm size

This paper explores how the initial farm size structure affects the exit decision of farms inducing free land capacities, and the allocation of the newly available land resources to the remaining farms in a particular region. We model an agricultural market where large and small firms first decide whether to leave the market or not; in case of continuing in production the farms compete for getting access to additional land resources in a Vickrey auction. We find that larger farms allocate more additional quantity than small farms; the latter are more likely to leave the market. An empirical illustration gives further support and reveals the relation between farm size structure, farm exits and growth of the large.asymmetries, land market, capacity allocation, Vickrey auction, Agricultural and Food Policy, Farm Management, Land Economics/Use, L11, L12, Q12,

Optimal Allocation of Land for Conservation: A General Equilibrium Analysis

This paper was replaced with a revised version on 7/26/10Conservation, General Equilibrium Modeling, Optimal Land Allocation, Conservation Tax, Environmental Economics and Policy, Land Economics/Use, Q57, C68,

Consequences of the 2003 CAP Reform on a Mediterranean Agricultural System of Portugal

Agriculture in dry land Mediterranean areas faces considerable level of production risk as result of the unpredictable weather. Governmental income stabilisation instruments have had a major impact on Mediterranean farms in changing land allocation, and changing income levels and variability. Using a mathematical programming model, the impact of the 2003 CAP reform on land allocation and on income variability is evaluated for a Portuguese Mediterranean farm. The results show an increase of extensification of production activities. They also show an increase in total farm income, a reduction in relative total income variability and an increase in relative production income variability.agricultural policy modelling, decoupling, Mediterranean, Agricultural and Food Policy, Q18, C61,

Property Rights for the Poor: Effects of Land Titling

Secure property rights are considered a key determinant of economic development. The evaluation of the causal effects of property rights, however, is a difficult task as their allocation is typically endogenous. To overcome this identification problem, we exploit a natural experiment in the allocation of land titles. In 1981, squatters occupied a piece of land in a poor suburban area of Buenos Aires. In 1984, a law was passed expropriating the former owners’ land to entitle the occupants. Some original owners accepted the government compensation, while others disputed the compensation payment in the slow Argentine courts. These different decisions by the former owners generated an exogenous allocation of property rights across squatters. Using data from two surveys performed in 2003 and 2007, we find that entitled families substantially increased housing investment, reduced household size, and enhanced the education of their children relative to the control group. These effects, however, did not take place through improvements in access to credit. Our results suggest that land titling can be an important tool for poverty reduction, albeit not through the shortcut of credit access, but through the slow channel of increased physical and human capital investment, which should help to reduce poverty in the future generations.Property rights, land titling, natural experiment, urban poverty.

Allocation of Land at the Rural-Urban Fringe Using a Spatially-Realistic Ecosystem Constraint

Development in rural-urban fringe communities is increasing with the potential to damage healthy ecosystems and endanger the long-term persistence of resident flora and fauna. The environmental impacts of development include loss, degradation, and fragmentation of wildlife habitat, increased air and water pollution, increased soil erosion, and decreased aesthetic appeal of the landscape. Current land use policies rarely incorporate features of landscape-scale ecosystem health. This paper develops a model that combines ecological and economic constructs to determine the optimal allocation of development across a spatially-realistic landscape. The land allocation model establishes links between long-term metapopulation persistence and development through an ecosystem constraint. A social planner seeks to maximize the benefits of development while guaranteeing a certain likelihood of long-term metapopulation persistence across the landscape that accounts for the changes to habitat patches and species dispersal success brought about by development. It is shown that in an economically homogeneous environment, the allocation of land to developed uses is determined solely by ecological elements (landscape structure and species parameters). The amount of land remaining in each habitat patch is the same regardless of their initial sizes or initial levels of development. The cost to society of meeting the ecological objective for metapopulation persistence depends on the land rent, the level of the safe-minimum-standard, the area of the landscape management unit, the distance between habitat patches, the dispersal ability of the focal species, and the species-specific area scaling parameter. Cost is not affected by the initial conditions of the habitat patches or the amount of development that has already taken place in the landscape management unit. When heterogeneity is introduced, the allocation of land is also determined by the differential land rents. More development occurs in habitat patches and landscape management units with higher land rents compared with the homogeneous case. In the heterogeneous land use case, where different land uses have different intensities of damages, the development intensity parameters are factors in the solution with more development occurring in areas zoned for less intensive land uses and the cost to society of achieving the ecological objective is a function of initial habitat patch sizes.Land Economics/Use,

Rural Livelihoods, Forest Access and Time Use: A Study of Forest Communities in Northwest India

This paper investigates the effects of the size of private land holdings and access to forest commons on the labour allocation to livelihood activities. The statistical analysis indicates that land and forests are complementary assets in the rural production process. Differential access to private land and common forests together explain variability in time allocation to rural livelihoods in the forested regions of northwest India. Development and conservation policies that might cause displacements or disruptions to such livelihoods must therefore consider the impact of policy making on private wealth as well as access to the natural commons.time use; rural livelihoods; forest commons; protected areas; South Asia; India