Evaluation of Agro-Environmental Policy through a Calibrated Simulation Farm Model
AbstractThis paper evaluates the production and income effects from the adoption of one popular agro-environmental measure, which concerns buffer strips along field edges, on a representative sample of crop farms in Belgium taken from the Farm Accountancy Data Network database. We represent the economic behaviour of each crop farm with a profit-maximisation programming model that embeds an estimated ex-ante flexible cost function. We calibrate the simulation model using the Positive Mathematical Programming approach. Accounting for farm and regional heterogeneity, simulation results show how crop farms may respond differently to incentives for the agroenvironmental measure. Results demonstrate that economic incentives can be an effective mechanism for encouraging uptake of agro-environmental measures and that impacts of agro-environmental measures can vary by farm and region, depending on agronomic conditions and the environmental potential for agro-environmental measure activity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114577.
Date of creation: 2011
Date of revision:
Agricultural and Food Policy; Environmental Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-10-15 (Agricultural Economics)
- NEP-ALL-2011-10-15 (All new papers)
- NEP-ENV-2011-10-15 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hansen, Kristiana & Baudry, Alexandre & De Blander, Rembert & Frahan, Bruno Henry de & Polome, Philippe, 2009. "Estimating an Ex Ante Cost Function for Belgian Arable Crop Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49477, Agricultural and Applied Economics Association.
- Helming, John F.M. & Schrijver, R.A.M., 2008. "Effects of agri-environmental measures and changes in EU single farm payments on Dutch agriculture," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6602, European Association of Agricultural Economists.
- Bob Crabtree & Neil Chalmers & Nicola-Jo Barron, 1998. "Information for Policy Design: Modelling Participation in a Farm Woodland Incentive Scheme," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 306-320.
- Gerard Wynn & Bob Crabtree & Jacqueline Potts, 2001. "Modelling Farmer Entry into the Environmentally Sensitive Area Schemes in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 65-82.
- Barreiro-Hurle, Jesus & Espinosa-Goded, Maria & Dupraz, Pierre, 2008. "Does Intensity Of Change Matter? Factors Affecting Adoption In Two Agri-Environmental Schemes," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6458, European Association of Agricultural Economists.
- Pierre Dupraz & Dominique Vermersch & Lionel Delvaux & Bruno Henry de Frahan, 1999. "Adoption d'une MAE et consentement à recevoir des agriculteurs en région wallone," Économie rurale, Programme National Persée, vol. 249(1), pages 71-81.
- Pope, Rulon D. & Just, Richard E., 1996. "Empirical implementation of ex ante cost functions," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 231-249.
- Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
- Bruno Henry de Frahan & Alexandre Baudry & Rembert De Blander & Philippe Polomé & Richard Howitt, 2011. "Dairy farms without quotas in Belgium: estimation and simulation with a flexible cost function," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(4), pages 469-495, October.
- Dupraz, Pierre & Vanslembrouck, Isabel & Bonnieux, Francois & Van Huylenbroeck, Guido, 2002. "Farmers' Participation in European Agri-Environmental Policies," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24799, European Association of Agricultural Economists.
- Bertoni, Danilo & Cavicchioli, Daniele & Pretolani, Roberto & Olper, Alessandro, 2008. "Agri-Environmental Measures Adoption: New Evidence From Lombardy Region," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44848, European Association of Agricultural Economists.
- Moschini, GianCarlo, 2001.
"Production risk and the estimation of ex-ante cost functions,"
Journal of Econometrics,
Elsevier, vol. 100(2), pages 357-380, February.
- Moschini, GianCarlo, 2001. "Production Risk and the Estimation of Ex Ante Cost Functions," Staff General Research Papers 1922, Iowa State University, Department of Economics.
- GianCarlo Moschini, 2000. "Production Risk and the Estimation of Ex Ante Cost Functions," Center for Agricultural and Rural Development (CARD) Publications 00-wp262, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Judez, Lucinio & de Andres, Rosario & Ibanez, M. & Urzainqui, Elvira, 2008. "A Method For Including In Pmp Models Activities Non-Existent In The Baseline Situation," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44243, European Association of Agricultural Economists.
- Defrancesco, Edi & Gatto, Paola & Runge, C. Ford & Trestini, Samuele, 2006. "Factors Affecting Farmers' Participation in Agri-Environmental Measures: Evidence from a Case Study," Conference Papers 6688, University of Minnesota, Center for International Food and Agricultural Policy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.