UNDERSTANDING THE DEMAND SIDE AND COORDINATING THE SUPPLY SIDE FOR CONNECTED GOODS AND SERVICES

regional development, multifunctionality, municipalities, demand, coordination, networks, Agribusiness, Agricultural and Food Policy, Agricultural Finance,

Policies for Promoting Public Goods in Agriculture

The ongoing negotiations of the World Trade Organization (WTO) on agriculture has triggered an increased interest in the linkages between commodity production and public goods in agriculture. This paper takes a closer look at this issue. Particular emphasis is placed on production economics and policy design issues. Production is placed in a multi-product multi-input setting. The provision of public goods from agriculture is analyzed utilizing a principle-agent framework. Particular emphasis is placed on issues pertaining to incentive compatibility, informational aspects and the participation constraint. Public finance aspects of various policies are also addressed. Price supports are of particular interest as they are widely used in European agriculture. This makes analyses of price supports particularly relevant.Multi-product production, public goods, agriculture, principal-agent models, resource allocation, policy, Agricultural and Food Policy,

Introducing Genetically Modified Plants: Now or Later - An Option Value Approach

Using market data, we have estimated the quasi option value of delaying to grow genetically modified corn and soybeans in Europe. We find that the current quasi option value of growing genetically modified soybeans and corn in Europe is high. This makes it likely that for the time being the information value of waiting exceeds the market gains of growing genetically modified plants in Europe.quasi option value, value of information, genetically modified plants, Crop Production/Industries, Q29, G13, Q18,

OPTIMAL MANAGEMENT OF A FOREST/WILDLIFE SYSTEM WITH BILATERAL EXTERNALITIES

Browsing by large ungulate wildlife species damages valuable trees, but increases the productivity of the wildlife stock. The optimal management of trees and wildlife involves a tradeoff between these two impacts, as well as correct timing of tree harvests from each forest stand. For a model of moose and pine in Norway, it is found that harvest of adjacent forest stands should be adjusted over time to bring the stands into synch. Doing so maximizes the moose productivity boost that occurs immediately following harvest of mature trees, and protects the young trees from overbrowsing by spreading out the browsing pressure among more young trees. This result is, however, sensitive to the specification of the relationship between forage availability and moose productivity.Resource /Energy Economics and Policy,

Documentation of model components EXPAMOD and CAPRI

Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Production Economics,

EXPAMOD: A methodological Tool for Linking Farm and Market Models by Means of Econometric Response Functions

Technical change at the farm level or changes in input prices often entail that the firm's supply function changes. These changes can take place in numerous ways. This paper presents a methodology that increases the consistency in supply responses across various sets of agricultural products and farm types with a market model based on a statistical response function approach. Since most farm simulation models are limited to a subset of regions and farm types, the linkage to an aggregated model requires a procedure for expanding these results to non sample regions, so that full regional coverage is achieved. This paper addresses theoretical aspects related to the consistency between micro and market level models. Next it deals with some empirical findings related to the selection of different functional forms for extrapolation. We conclude with a critical reflection on applicability of this method in addressing further needs on up-scaling of other economic as well as non-economic indicators.farm models, market models, extrapolation, Farm Management,

ECECMOD: an interdisciplinary modelling system for analyzing nutrient and soil losses from agriculture

Abstract This article discusses a set of principles for policy analysis of environmental problems. The main focus is on integrating economic and ecological analyses through a mathematical modelling framework. The paper starts by developing a general model for the study of environmental issues. Principles for operationalizing the model are discussed, and ECECMOD (a new modelling system constructed to analyze pollution from agricultural systems on the basis of these principles) is introduced. Some of the results obtained by ECECMOD are presented to facilitate a discussion about the gains to be obtained by this kind of analysis. The study shows that it is of great importance to combine economic and ecological analyses at a fairly high level of resolution when studying environmental effects of complex systems

Integration of all FSSIM components within SEAMLESS-IF and a stand alone Graphical User Interface for FSSIM

Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use,

Truthful revelation in nonmarket valuation

A major criticism of contingent valuation methods relates to their hypothetical nature, where truthful revelation of willingness-to-pay is not secured because of the missing link between stated willingness-to-pay and the respondent's budget constraint. Large deviations between stated willingness-to-pay and actual payments in both field and experimental studies where actual payments were collected lend support to these claims. In its utmost format this lends contingent valuation studies vulnerable to strategic behavior. This paper combines the truthful revelation properties of multi-unit uniform price auctions and the median voter theorem to induce truthful revelation. The intuition is as follows : Let the price in the auction be set by the median bid, and pass this price onto a referendum. The expected net gains of passing the referendum would then be positive, implying that the budget constraint would be introduced in a probabilistic manner