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Multifunctionality of agriculture: An inquiry into the complementarity between landscape preservation and food security

Without support, the levels of agricultural public goods will fall short of the demand in high cost countries like Norway, Finland and Iceland. However, as demonstrated in this paper using Norway as a case, the current support and agricultural activity is far out of proportions from a public goods perspective. Model simulations show that at most 40% of the current support level can be defended by the public good argument. Furthermore, the present support, stimulating high production levels, is badly targeted at the public goods in question. Since agricultural land is a major component of both food security and landscape preservation, thus giving rise to a high degree of cost complementarities between the two public goods, it would be more efficient to support land extensive production techniques, than production per se.

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File URL: http://www.uib.no/filearchive/No.%2011-05.pdf
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Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 11/05.

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Length: 25 pages
Date of creation: 05 Apr 2005
Date of revision:
Handle: RePEc:hhs:bergec:2005_011
Contact details of provider: Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
Web page: http://www.uib.no/econ/en
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  1. 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.
  2. Brunstad, Rolf Jens & Gaasland, Ivar & Vardal, Erling, 1995. "Agriculture as a provider of public goods: a case study for Norway," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 13(1), October.
  3. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
  4. 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.
  5. Brunstad, R.J. & Gaasland, I. & Vardal, E., 1999. "Agricultural Production and the Optimal Level of Landscape Preservation," Norway; Department of Economics, University of Bergen 205, Department of Economics, University of Bergen.
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