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Structural Agricultural Land Use Modelling

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  • Fezzi, Carlo
  • Bateman, Ian J.

Abstract

This paper develops a structural econometric model of agricultural land use and production based on the joint multi-output technology representation introduced by Chambers and Just (1989). Starting from a flexible specification of the farm profit function we derive land use allocation, input applications, crops yield and livestock number equations in a joint and theoretically consistent framework. We present an empirical application using fine-scale spatial data covering the entirety of England and Wales and including the main economic, policy and environmental drivers of land use change in the past 40 years. To account for the presence of censored observations in this micro-level data we estimate the model as a system of two-limits Tobit equations via Quasi-Maximum Likelihood. We finally compare the forecasting ability of our approach against an established benchmark: the land use share logit model.

Suggested Citation

  • Fezzi, Carlo & Bateman, Ian J., 2009. "Structural Agricultural Land Use Modelling," 2009 Conference, August 16-22, 2009, Beijing, China 51423, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51423
    DOI: 10.22004/ag.econ.51423
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    References listed on IDEAS

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