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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.

Suggested Citation

  • Kan, Iddo & Haim, David & Rapaport-Rom, Mickey & Shechter, Mordechai, 2008. "Environmental Amenities and Optimal Agricultural Land Use: The Case of Israel," Discussion Papers 42832, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  • Handle: RePEc:ags:huaedp:42832
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    References listed on IDEAS

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    1. Douglas J. Miller & Andrew J. Plantinga, 1999. "Modeling Land Use Decisions with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 180-194.
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    5. 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.
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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 46851, Southern Agricultural Economics Association.
    2. Zvi Baum & Ruslana Rachel Palatnik & Iddo Kan & Mickey Rapaport-Rom, 2016. "Economic Impacts of Water Scarcity Under Diverse Water Salinities," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-22, March.
    3. 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.
    4. Roberto Ponce & María Blanco & Carlo Giupponi, 2014. "Climate Change, Water Scarcity in Agriculture and the Country-Level Economic Impacts. A Multimarket Analysis," Serie Working Papers 02, Universidad del Desarrollo, School of Business and Economics, revised Nov 2014.
    5. Kan, Iddo & Kimhi, Ayal & Kaminski, Jonathan, 2015. "Climate-Change Impacts on Agriculture and Food Markets: Combining a Micro-Level Structural Land-Use Model and a Market-Level Equilibrium Model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205128, Agricultural and Applied Economics Association;Western Agricultural Economics Association.

    More about this item

    Keywords

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

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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