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Endogenous technology switches in Dutch dairy farming under environmental restrictions

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  • MHC Komen
  • JHM Peerlings

Abstract

In this paper an applied general equilibrium (AGE) model written in mixed-complementarity format is used to analyse the effects of an increase in milk quota in the Netherlands when nitrogen emissions in agriculture are restricted. The model combines the strengths of AGE models and mathematical programming models, which allows economy-wide policy analyses when technology switches are allowed. Results show that a welfare gain can be achieved by increasing milk quota while keeping nitrate (N) emissions in agriculture at the same level. Under such a policy change inactive N-extensive technologies in dairy farming become active and (partly) replace N-intensive technologies. Output in other agricultural industries decreases. Copyright 2001, Oxford University Press.

Suggested Citation

  • MHC Komen & JHM Peerlings, 2001. "Endogenous technology switches in Dutch dairy farming under environmental restrictions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(2), pages 117-142, June.
    • Handle: RePEc:oup:erevae:v:28:y:2001:i:2:p:117-142
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    Cited by:

    1. Chen, Jing & Rozelle, Scott, 2003. "Market Emergence And The Rise And Fall Of Backyard Hog Production In China," 2003 Annual meeting, July 27-30, Montreal, Canada 21969, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Helming, John F.M. & Peerlings, Jack H.M., 2002. "The Impact of Milk Quota Abolishment on Dutch Agriculture and Economy: Applying an Agricultural Sector Model Integrated Into a Mixed Input-Output Model," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24911, European Association of Agricultural Economists.

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