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Applied economics of multifunctional agriculture

  • Nilsson, Fredrik Olof Laurentius
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    The thesis consists of an introduction and four articles that can be read independently of each other. Article 1: "Biodiversity on Swedish pastures: Estimating biodiversity production costs", estimates the costs of producing biological diversity on Swedish permanent grasslands. A simple model is introduced where biodiversity on pastures is produced using grazing animals. In the article, biological diversity is considered a quantitative measure where a given quantity can be produced either by a small area with high quality or a larger area with lower quality. Box-Cox transformations are used in the empirical analysis and the results indicate that the biodiversity production costs differ between the two investigated regions. Article 2: "Transaction Costs and Agri-Environmental Policy Measures: are Preferences Influencing Policy Implementation?", investigates the transaction cost determinants of a Swedish agri-environmental policy measure. The problem is whether unavoidable 'economic factors' drive the transaction costs, or if potentially avoidable 'political factors' have an undue impact. Although initial results indicate that the share of voters voting for particular political configurations influences the level of transaction costs, the extreme bounds analysis shows that only the economic variables are robust with respect to model specifications. Article 3: "Multifunctionality – what does the literature tell us?", surveys the literature on multifunctional agriculture. It is shown i.a. that the level of transaction costs has to be considered when developing policies, that even optimal policies may be controversial from a trade perspective and that the spatial variation both in production and values should be accounted for. Article 4: "Are the Mediterranean countries competitive in fresh fruit and vegetable exports?", investigates the competitiveness of ten Mediterranean countries' fruit and vegetable sectors, utilizing various indicators and the results of a constant market share analysis. The results show that the competitiveness generally has declined in the 1990s and that the countries do not fully utilize their potentials.

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    File URL: http://pub.epsilon.slu.se/1768/
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    Paper provided by Swedish University of Agricultural Sciences, Department of Economics in its series Department of Economics publications with number 1768.

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    Date of creation: 2008
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    Handle: RePEc:sua:ekonwp:1768
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    1. Richard C. Bishop, 1982. "Option Value: An Exposition and Extension," Land Economics, University of Wisconsin Press, vol. 58(1), pages 1-15.
    2. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
    3. Arild Vatn & Daniel Bromley, 1997. "Externalities — A market model failure," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(2), pages 135-151, March.
    4. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
    5. Brown, Gardner M, Jr & Mendelsohn, Robert, 1984. "The Hedonic Travel Cost Method," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 427-33, August.
    6. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    7. Arild Vatn, 1998. "Input versus Emission Taxes: Environmental Taxes in a Mass Balance and Transaction Costs Perspective," Land Economics, University of Wisconsin Press, vol. 74(4), pages 514-525.
    8. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    9. Globerman, Steven & Schwindt, Richard, 1986. "The organization of vertically related transactions in the Canadian forest products industries," Journal of Economic Behavior & Organization, Elsevier, vol. 7(2), pages 199-212, June.
    10. L. R. Rigaux, 1971. "Market Share Analysis Applied To Canadian Wheat Exports," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 19(1), pages 22-34, 07.
    11. Richardson, J David, 1971. "Some Sensitivity Tests for a 'Constant-Market-Shares' Analysis of Export Growth," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 300-04, August.
    12. Thursby, Marie C. & Johnson, Paul R. & Grennes, Thomas J., 1986. "The law of one price and the modelling of disaggregated trade flows," Economic Modelling, Elsevier, vol. 3(4), pages 293-302, October.
    13. Alan Randall, 1994. "Difficulty with the Travel Cost Method," Land Economics, University of Wisconsin Press, vol. 70(1), pages 88-96.
    14. Katherine Falconer & Pierre Dupraz & Martin Whitby, 2001. "An Investigation of Policy Administrative Costs Using Panel Data for the English Environmentally Sensitive Areas," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 83-103.
    15. Lancaster, Kelvin, 1975. "Socially Optimal Product Differentiation," American Economic Review, American Economic Association, vol. 65(4), pages 567-85, September.
    16. Randall, Alan, 1998. "Beyond the crucial experiment: mapping the performance characteristics of contingent valuation," Resource and Energy Economics, Elsevier, vol. 20(2), pages 197-206, June.
    17. Lyons, Bruce R, 1994. "Contracts and Specific Investment: An Empirical Test of Transaction Cost Theory," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(2), pages 257-78, Summer.
    18. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
    19. Pruckner, Gerald J, 1995. "Agricultural Landscape Cultivation in Austria: An Application of the CVM," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 173-90.
    20. Ahmadi-Esfahani, Fredoun Z., 2006. "Constant market shares analysis: uses, limitations and prospects," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), December.
    21. Leffler, Keith B & Rucker, Randal R, 1991. "Transactions Costs and the Efficient Organization of Production: A Study of Timber-Harvesting Contracts," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1060-87, October.
    22. Mishan, E J, 1971. "The Postwar Literature on Externalities: An Interpretative Essay," Journal of Economic Literature, American Economic Association, vol. 9(1), pages 1-28, March.
    23. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
    24. Fredoun Z. Ahmadi-Esfahani, 2006. "Constant market shares analysis: uses, limitations and prospects ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 510-526, December.
    25. Arild Vatn, 2002. "Multifunctional agriculture: some consequences for international trade regimes," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 309-327, July.
    26. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
    27. Alan Randall, 2002. "Valuing the outputs of multifunctional agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 289-307, July.
    28. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-62, April.
    29. Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
    30. Drake, Lars, 1992. "The Non-market Value of the Swedish Agricultural Landscape," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 351-64.
    31. Per Kristian Rørstad & Arild Vatn & Valborg Kvakkestad, 2007. "Why do transaction costs of agricultural policies vary?," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 1-11, 01.
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