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Amenity Benefits And Public Policy: An Application To The Connecticut Dairy Sector

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  • Lopez, Rigoberto A.
  • Altobello, Marilyn A.
  • Shah, Farhed A.

Abstract

This article develops a conceptual framework for analyzing the role of state-level policies towards the dairy sector in the presence of farmland amenity benefits, and applies it to Connecticut. Milk supply, demand and amenity benefit functions are estimated, and three exogenously determined milk prices are considered. The empirical findings show, under each price scenario, the extent to which land is underallocated to the dairy sector if amenity benefits are ignored. Analysis of policy options reveals that a partial production cost subsidy represents the least-cost alternative for attaining the socially optimal solution for the region.

Suggested Citation

  • Lopez, Rigoberto A. & Altobello, Marilyn A. & Shah, Farhed A., 1994. "Amenity Benefits And Public Policy: An Application To The Connecticut Dairy Sector," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-12, December.
    • Handle: RePEc:ags:joaaec:15176
    DOI: 10.22004/ag.econ.15176
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    1. McDowell, Howard & Fleming, Ann & Spinelli, Felix, 1990. "U.S. Milk Markets Under Alternative Federal Order Pricing Policies," Staff Reports 278357, United States Department of Agriculture, Economic Research Service.
    2. Rigoberto A. Lopez & Farhed A. Shah & Marilyn A. Altobello, 1994. "Amenity Benefits and the Optimal Allocation of Land," Land Economics, University of Wisconsin Press, vol. 70(1), pages 53-62.
    3. Huang, Kuo S., 1985. "U.S. Demand for Food: A Complete System of Price and Income Effects," Technical Bulletins 157014, United States Department of Agriculture, Economic Research Service.
    4. Fallert, Richard F. & Blayney, Don P. & Miller, James J., 1990. "Dairy: Background for 1990 Farm Legislation," Staff Reports 278854, United States Department of Agriculture, Economic Research Service.
    5. L. J. Hubbard, 1992. "Two‐Tier Pricing For Milk: A Re‐Examination," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 343-354, September.
    6. Lee, Tsoung-Chao & Bravo-Ureta, Boris E. & Ling, K. Charles, 1986. "Technical Efficiency of Dairy Production in New England: Co-op Members Versus Nonmembers," Research Reports 312999, United States Department of Agriculture, Rural Development.
    7. Thomas R. Plaut, 1980. "Urban Expansion and the Loss of Farmland in the United States: Implications for the Future," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 537-542.
    8. Gardner, Bruce L., 1994. "Commercial Agriculture in Metropolitan Areas: Economics and Regulatory Issues," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(1), pages 100-109, April.
    9. Haidacher, Richard C. & Blaylock, James R. & Myers, Lester H., 1988. "Consumer Demand for Dairy Products," Agricultural Economic Reports 308041, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Perekhozhuk Oleksandr & Hockmann Heinrich & Fertő Imre & Bakucs Lajos Zoltán, 2013. "Identification of Market Power in the Hungarian Dairy Industry: A Plant-Level Analysis," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-13, January.
    2. Peterson, Jeffrey M., 1999. "Optimal Agricultural Land Pricing Policies Under Multiple Externalities In A Global Economy," 1999 Annual meeting, August 8-11, Nashville, TN 21613, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Rigoberto A. Lopez & Nataliya Plesha, 2013. "Economic And Sustainability Impacts Of Connecticut’S Public Act 09-229 To Support Dairy Farming," Outreach Reports 17, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Colyer, Dale, 1998. "Farmland Preservation Programs," Conference Papers 19102, West Virginia University, Department of Agricultural Resource Economics.
    5. Chidmi, Benaissa & Lopez, Rigoberto A. & Cotterill, Ronald W., 2003. "Retail Oligopoly Power And Fluid Milk Prices In Boston," 2003 Annual meeting, July 27-30, Montreal, Canada 22107, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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