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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
    DOI: 10.22004/ag.econ.42832
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    Cited by:

    1. 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.
    2. Kimhi, A., 2018. "Integrated Micro-Macro Structural Econometric Framework for Assessing Climate-Change Impacts on Agricultural Production and Food Markets," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276972, International Association of Agricultural Economists.
    3. Kan, Iddo & Reznik, Ami & Kaminski, Jonathan & Kimhi, Ayal, 2023. "The impacts of climate change on cropland allocation, crop production, output prices and social welfare in Israel: A structural econometric framework," Food Policy, Elsevier, vol. 115(C).
    4. Rotem Zelingher & Andrea Ghermandi & Enrica Cian & Malcolm Mistry & Iddo Kan, 2019. "Economic Impacts of Climate Change on Vegetative Agriculture Markets in Israel," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 679-696, October.
    5. 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.
    6. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," Economic Research Papers 270633, University of Warwick - Department of Economics.
    7. Yerushalmi, Erez, 2018. "Using Water Allocation in Israel as a Proxy for Imputing the Value of Agricultural Amenities," Ecological Economics, Elsevier, vol. 149(C), pages 12-20.
    8. 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.
    9. 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.
    10. Palatnik, Ruslana Rachel & Baum, Zvi & Kan, Iddo & Rapaport-Rom, Mickey, 2016. "Economic Impacts of Water Scarcity under Diverse Water Salinities," Conference papers 330173, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Ruslana Rachel Palatnik & Paulo Augusto Lourenço Dias Nunes, 2015. "Economic valuation of climate change-induced biodiversity impacts on agriculture: results from a macro-economic application to the Mediterranean basin," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 4(1), pages 45-63, March.
    12. Bar-Nahum, Ziv & Reznik, Ami & Finkelshtain, Israel & Kan, Iddo, 2022. "Centralized water management under lobbying: Economic analysis of desalination in Israel," Ecological Economics, Elsevier, vol. 193(C).
    13. Xin Yang & Anlu Zhang & Fan Zhang, 2019. "Farmers’ Heterogeneous Willingness to Pay for Farmland Non-Market Goods and Services on the Basis of a Mixed Logit Model—A Case Study of Wuhan, China," IJERPH, MDPI, vol. 16(20), pages 1-14, October.

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    More about this item

    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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