IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v69y2018i3p777-793.html
   My bibliography  Save this article

Analysing Farm‐specific Payments for Norway using the Agrispace Model

Author

Listed:
  • Klaus Mittenzwei
  • Wolfgang Britz

Abstract

Norway maintains a complex system of activity or type specific coupled payments which account for a large share of farm income. Most of the payment rates are negatively related to farm size and are higher in remote areas compared to central regions. We present and use a newly developed recursive‐dynamic multi‐commodity model (Agrispace) with CES production functions depicting regional farm clusters derived from the full farm population. Using this model, we simulate impacts of current and alternative subsidy policies on production, prices, input use, income and farm structural change. Mapping cluster results to each farm along with behavioural rules allows estimation of individual profits and farm exits. Our results indicate that, in the short run, the current policy regime seems to support the policy objective of maintaining a variety of farms in all parts of Norway. In the long run, farm structural change is less affected by a policy reform that leaves total support levels unchanged.

Suggested Citation

  • Klaus Mittenzwei & Wolfgang Britz, 2018. "Analysing Farm‐specific Payments for Norway using the Agrispace Model," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 777-793, September.
    • Handle: RePEc:bla:jageco:v:69:y:2018:i:3:p:777-793
    DOI: 10.1111/1477-9552.12268
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-9552.12268
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-9552.12268?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gocht, Alexander & Britz, Wolfgang, 2011. "EU-wide farm type supply models in CAPRI--How to consistently disaggregate sector models into farm type models," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 146-167, January.
    2. Arne Stolbjerg Drud, 1994. "CONOPT—A Large-Scale GRG Code," INFORMS Journal on Computing, INFORMS, vol. 6(2), pages 207-216, May.
    3. Anna Makles, 2012. "Stata tip 110: How to get the optimal k-means cluster solution," Stata Journal, StataCorp LP, vol. 12(2), pages 347-351, June.
    4. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(4).
    5. François Bourguignon & Maurizio Bussolo & Luis Pereira, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution," Post-Print halshs-00754864, HAL.
    6. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(04), pages 1-15, December.
    7. Roger Martini, 2011. "Long Term Trends in Agricultural Policy Impacts," OECD Food, Agriculture and Fisheries Papers 45, OECD Publishing.
    8. David S. Bullock & Klaus Mittenzwei & Paal B. Wangsness, 2016. "Balancing public goods in agriculture through safe minimum standards," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 561-584.
    9. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    10. Ferris, Michael C. & Munson, Todd S., 2000. "Complementarity problems in GAMS and the PATH solver," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 165-188, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klaus Mittenzwei, 2020. "Greenhouse Gas Emissions in Norwegian Agriculture: The Regional and Structural Dimension," Sustainability, MDPI, vol. 12(6), pages 1-13, March.
    2. Sebastian Neuenfeldt & Alexander Gocht & Thomas Heckelei & Klaus Mittenzwei & Pavel Ciaian, 2021. "Using Aggregated Farm Location Information to Predict Regional Structural Change of Farm Specialisation, Size and Exit/Entry in Norway Agriculture," Agriculture, MDPI, vol. 11(7), pages 1-22, July.
    3. Wenche E. Dramstad & Neil Sang & Henrik Forsberg-Mathiesen & Anders Bryn, 2021. "Five Ways of Characterizing Agricultural Land Use Dynamics and Abandonment from Subsidy Data," Land, MDPI, vol. 10(11), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klaus Mittenzwei, 2020. "Greenhouse Gas Emissions in Norwegian Agriculture: The Regional and Structural Dimension," Sustainability, MDPI, vol. 12(6), pages 1-13, March.
    2. Britz, Wolfgang & Ciaian, Pavel & Gocht, Alexander & Kanellopoulos, Argyris & Kremmydas, Dimitrios & Müller, Marc & Petsakos, Athanasios & Reidsma, Pytrik, 2021. "A design for a generic and modular bio-economic farm model," Agricultural Systems, Elsevier, vol. 191(C).
    3. Durand-Lasserve, Olivier & Almutairi, Hossa & Aljarboua, Abdullah & Pierru, Axel & Pradhan, Shreekar & Murphy, Frederic, 2023. "Hard-linking a top-down economic model with a bottom-up energy system for an oil-exporting country with price controls," Energy, Elsevier, vol. 266(C).
    4. Ni, Yuanming & Steinshamn, Stein I. & Kvamsdal, Sturla F., 2022. "Negative shocks in an age-structured bioeconomic model and how to deal with them," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 15-30.
    5. Zhang, Wenwei & Xu, Min & Wang, Shuaian, 2023. "Joint location and pricing optimization of self-service in urban logistics considering customers’ choice behavior," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    6. Victor Reyes & Ignacio Araya, 2021. "AbsTaylor: upper bounding with inner regions in nonlinear continuous global optimization problems," Journal of Global Optimization, Springer, vol. 79(2), pages 413-429, February.
    7. Dimitris Bertsimas & Georgios Margaritis, 2025. "Global optimization: a machine learning approach," Journal of Global Optimization, Springer, vol. 91(1), pages 1-37, January.
    8. Ligang Wang & Zhiping Yang & Shivom Sharma & Alberto Mian & Tzu-En Lin & George Tsatsaronis & François Maréchal & Yongping Yang, 2018. "A Review of Evaluation, Optimization and Synthesis of Energy Systems: Methodology and Application to Thermal Power Plants," Energies, MDPI, vol. 12(1), pages 1-53, December.
    9. Fuentes-Cortés, Luis Fabián & Flores-Tlacuahuac, Antonio, 2018. "Integration of distributed generation technologies on sustainable buildings," Applied Energy, Elsevier, vol. 224(C), pages 582-601.
    10. Post, Thierry & Karabatı, Selçuk & Arvanitis, Stelios, 2018. "Portfolio optimization based on stochastic dominance and empirical likelihood," Journal of Econometrics, Elsevier, vol. 206(1), pages 167-186.
    11. Huiyi Cao & Kamil A. Khan, 2023. "General convex relaxations of implicit functions and inverse functions," Journal of Global Optimization, Springer, vol. 86(3), pages 545-572, July.
    12. Duarte, Belmiro P.M. & Sagnol, Guillaume & Wong, Weng Kee, 2018. "An algorithm based on semidefinite programming for finding minimax optimal designs," Computational Statistics & Data Analysis, Elsevier, vol. 119(C), pages 99-117.
    13. Cignitti, Stefano & Andreasen, Jesper G. & Haglind, Fredrik & Woodley, John M. & Abildskov, Jens, 2017. "Integrated working fluid-thermodynamic cycle design of organic Rankine cycle power systems for waste heat recovery," Applied Energy, Elsevier, vol. 203(C), pages 442-453.
    14. Artur M. Schweidtmann & Alexander Mitsos, 2019. "Deterministic Global Optimization with Artificial Neural Networks Embedded," Journal of Optimization Theory and Applications, Springer, vol. 180(3), pages 925-948, March.
    15. Jianhui Xie & Qiwei Xie & Yongjun Li & Liang Liang, 2021. "Solving data envelopment analysis models with sum-of-fractional objectives: a global optimal approach based on the multiparametric disaggregation technique," Annals of Operations Research, Springer, vol. 304(1), pages 453-480, September.
    16. Conrado Borraz-Sánchez & Russell Bent & Scott Backhaus & Hassan Hijazi & Pascal Van Hentenryck, 2016. "Convex Relaxations for Gas Expansion Planning," INFORMS Journal on Computing, INFORMS, vol. 28(4), pages 645-656, November.
    17. Andreas Lundell & Jan Kronqvist & Tapio Westerlund, 2022. "The supporting hyperplane optimization toolkit for convex MINLP," Journal of Global Optimization, Springer, vol. 84(1), pages 1-41, September.
    18. Tosoni, E. & Salo, A. & Govaerts, J. & Zio, E., 2019. "Comprehensiveness of scenarios in the safety assessment of nuclear waste repositories," Reliability Engineering and System Safety, Elsevier, vol. 188(C), pages 561-573.
    19. Santos, Lucas F. & Costa, Caliane B.B. & Caballero, José A. & Ravagnani, Mauro A.S.S., 2022. "Framework for embedding black-box simulation into mathematical programming via kriging surrogate model applied to natural gas liquefaction process optimization," Applied Energy, Elsevier, vol. 310(C).
    20. Masaki Kimizuka & Sunyoung Kim & Makoto Yamashita, 2019. "Solving pooling problems with time discretization by LP and SOCP relaxations and rescheduling methods," Journal of Global Optimization, Springer, vol. 75(3), pages 631-654, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:69:y:2018:i:3:p:777-793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.