The model for evaluation of sustainable agricultural sector development policy

Abstract

Developers of sustainable agricultural policy have to appraise the outcomes of the alternative policy solutions thus it is relevant to choose and create the means to solve the economical and environmental problems of sustainable agricultural sector development. This paper suggests the model for sustainable agricultural sector development estimating the aimed balance between supply and demand of agricultural produce. Proposals were made after the previous discussion of agricultural sector models of different countries. The model consists of equation sets for the judging of supply, demand, price transfer and welfare rate. The levers of general agricultural policy such as disbursements and production limitations are included into the equations of policy analysis. Equilibrium conditions are checked during the model identification. Model simulation enables us to find the optimal supply and demand equation coefficients defining the limitations. Statistical data are used for the calculation of the technical-economical model parameters. Preliminary results show the model utilization possibilities and its significance. The comprised model is beneficial for the investigation of the sustainable development solutions for agriculture and environment. Investigation of the influence of the economic scenarios of Lithuanian agricultural sector development and economical control methods can be fulfilled by changing the model parametersVytauto Didžiojo universitetasŽemės ūkio akademij