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Environmental Amenities and Optimal Agricultural Land Use: The Case of Israel

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  • Kan, Iddo
  • Haim, David
  • Rapaport-Rom, Mickey
  • Shechter, Mordechai

Abstract

This paper evaluates the effectiveness of changing land allocation among crops as a mechanism for increasing social welfare, where production profits and amenity benefits are augmented. A positive mathematical programming model is calibrated and applied to the northern part of Israel, using a crop-discriminating amenity-benefits function. Changes in land allocation increase social welfare by 2.4% nationwide, and by up to 15% on the regional level. Regional scale farming-profit losses amount to up to 6%. Due to the decreasing-return-to-scale nature of the amenity-benefits function, the inter-regional variability appears sensitive to the manner in which the country is divided into regions.

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Bibliographic Info

Paper provided by Hebrew University of Jerusalem, Department of Agricultural Economics and Management in its series Discussion Papers with number 42832.

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Date of creation: 2008
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Handle: RePEc:ags:huaedp:42832

Contact details of provider:
Postal: Faculty of Agriculture, Food and Environmental Quality Sciences Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100
Phone: 08-9481230
Fax: 08-9466267
Web page: http://departments.agri.huji.ac.il/economics/indexe.html
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Related research

Keywords: agricultural land use; environmental amenities; optimizing social welfare; Q10; Q24; Q50;

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  1. McConnell, Kenneth E., 1989. "The Optimal Quantity Of Land In Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, Northeastern Agricultural and Resource Economics Association, vol. 18(2), October.
  2. Brunstad, R.J. & Gaasland, I. & Vardal, E., 1999. "Agricultural Production and the Optimal Level of Landscape Preservation," Norway; Department of Economics, University of Bergen, Department of Economics, University of Bergen 205, Department of Economics, University of Bergen.
  3. Aliza Fleischer & Yacov Tsur, 2009. "The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 132-153.
  4. Bergstrom, John C. & Dillman, B.L. & Stoll, John R., 1985. "Public Environmental Amenity Benefits Of Private Land: The Case Of Prime Agricultural Land," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 17(01), July.
  5. Aliza Fleischer & Yacov Tsur, 2003. "Measuring the Recreational Value of Open Space," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 269-283.
  6. 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.
  7. Douglas J. Miller & Andrew J. Plantinga, 1999. "Modeling Land Use Decisions with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 81(1), pages 180-194.
  8. Robert J. Johnston & Joshua M. Duke, 2007. "Willingness to Pay for Agricultural Land Preservation and Policy Process Attributes: Does the Method Matter?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(4), pages 1098-1115.
  9. Franz Hackl & Gerald Pruckner, 1997. "Towards More Efficient Compensation Programmes for Tourists' Benefits From Agriculture in Europe," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 10(2), pages 189-205, September.
  10. Jeffrey M. Peterson & Richard N. Boisvert & Harry de Gorter, 2002. "Environmental policies for a multifunctional agricultural sector in open economies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 423-443, December.
  11. Crane, Randall, 2007. "Is There a Quiet Revolution in Women's Travel? Revisiting the Gender Gap in Commuting," University of California Transportation Center, Working Papers qt8nj9n8nb, University of California Transportation Center.
  12. Bowker, James Michael & Didychuk, D.D., 1994. "Estimation Of The Nonmarket Benefits Of Agricultural Land Retention In Eastern Canada," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), October.
  13. Richard C. Ready & Charles W. Abdalla, 2005. "The Amenity and Disamenity Impacts of Agriculture: Estimates from a Hedonic Pricing Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(2), pages 314-326.
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Cited by:
  1. Sande, Doris N. & Mullen, Jeffrey D. & Nzaku, Kilungu, 2009. "Amenity benefits and public policy: An application to the Georgia Pecan Industry," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia, Southern Agricultural Economics Association 46851, Southern Agricultural Economics Association.
  2. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," The Warwick Economics Research Paper Series (TWERPS) 992, University of Warwick, Department of Economics.

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