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Modelling the Efficiency of Agri-Environmental Payments to Czech Agriculture in a CGE Framework Incorporating Public Goods Approach

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  • Kristkova, Zuzana
  • Ratinger, T.

Abstract

Capturing agricultural multifunctionality has been a challenge to agricultural economists for more than a decade. On one hand, researchers increasingly include the provision of environmental protection and landscape maintenance in their commodity based models; on the other hand, there are efforts as contingent valuation to assess the economic value of environmental benefits provided by agriculture. This paper tries to merge both research streams by incorporating supply and demand of landscape as a public good in a CGE framework. The former is done by including an explicit sector of joint commodity and non-commodity production in the model structure; the latter by extending the household demand system of willingness to pay for landscape. The approach is tested on four scenarios which are extensively compared. Research presented in this paper is the result of a research grant MSM 6046070906 "Economics of Czech agricultural resources and their efficient usage within the framework of multifunctional agri-food systems" and a "Research Task of UZEI conducted for the Ministry of Agriculture TÚ 4241/2011".

Suggested Citation

  • Kristkova, Zuzana & Ratinger, T., 2013. "Modelling the Efficiency of Agri-Environmental Payments to Czech Agriculture in a CGE Framework Incorporating Public Goods Approach," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(2), pages 1-13, June.
    • Handle: RePEc:ags:aolpei:152691
    DOI: 10.22004/ag.econ.152691
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    References listed on IDEAS

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    1. Slee, William & Thomson, Kenneth J., 2011. "Rural development policy and the provision of public goods: challenges for evaluation," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99601, European Association of Agricultural Economists.
    2. Decreux, Yvan & Valin, Hugo, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 7284, TRADEAG - Agricultural Trade Agreements.
    3. Alexandre Gohin & Jean-Christophe Bureau, 2006. "Modelling the EU sugar supply to assess sectoral policy reforms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 223-247, June.
    4. Uthes, Sandra & Fricke, Katharina & König, Hannes & Zander, Peter & van Ittersum, Martin & Sieber, Stefan & Helming, Katharina & Piorr, Annette & Müller, Klaus, 2010. "Policy relevance of three integrated assessment tools—A comparison with specific reference to agricultural policies," Ecological Modelling, Elsevier, vol. 221(18), pages 2136-2152.
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    Cited by:

    1. Ozana Nadoveza Jelić & Jurica Šimurina, 2020. "Evaluating sectoral effects of agricultural nitrogen pollution reduction policy in Croatia within a CGE framework," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-35, December.

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    Environmental Economics and Policy;

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