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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.


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.

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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 26 (1994)
Issue (Month): 02 (December)

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Handle: RePEc:ags:joaaec:15176

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Keywords: Amenity benefits; Policy; Dairy; Land use; Land Economics/Use; Livestock Production/Industries;


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  1. 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.
  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. L. J. Hubbard, 1992. "Two-Tier Pricing For Milk: A Re-Examination," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 343-354.
  4. Gardner, Bruce L., 1994. "Commercial Agriculture In Metropolitan Areas: Economics And Regulatory Issues," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(1), April.
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Cited by:
  1. 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).
  2. Perekhozhuk, Oleksandr & Hockmann, Heinrich & Bakucs, Lajos Zoltan & Ferto, Imre, 2011. "Identification Of Market Power In The Hungarian Dairy Industry: A Plant-Level Analysis," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114768, European Association of Agricultural Economists.
  3. 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).
  4. 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.


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