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Modelling Organic Farming at Sector Level. An Application to the Reformed CAP in Austria

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  • Erwin Schmid
  • Franz Sinabell

Abstract

Organic farming practices have environmental benefits compared to conventional ones. Their adoption is the result of a complex interaction of intrinsic attitudes of farmers, their profit expectations and farm policy incentives. We use an agricultural sector model and develop an extended version of the Positive Mathematical Programming (PMP) method to differentiate organic farming from other management practices. Austria is chosen for the case study because 8 percent of its farmland are managed organically, and detailed data on alternative management practices are available. The results suggest that the agricultural policy reforms have made organic farming more attractive to farmers.

Suggested Citation

  • Erwin Schmid & Franz Sinabell, 2007. "Modelling Organic Farming at Sector Level. An Application to the Reformed CAP in Austria," WIFO Working Papers 288, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2007:i:288
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    File URL: https://www.wifo.ac.at/wwa/pubid/28278
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    References listed on IDEAS

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    1. Ottmar Röhm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
    2. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    3. Donna J. Lee & Richard E. Howitt, 1996. "Modeling Regional Agricultural Production and Salinity Control Alternatives for Water Quality Policy Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 41-53.
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    Cited by:

    1. Christian Schader & Jürn Sanders & Thomas Nemecek & Nic Lampkin & Matthias Stolze, 2008. "A Modelling Approach for Evaluating Agri-Environmental Policies at Sector Level," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 1(1), pages 93-132.
    2. Sanders, Jurn & Lampkin, Nicolas & Stolze, Matthias, 2008. "Impact Of The Wto Liberalisation On Organic Farming In Switzerland," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6481, European Association of Agricultural Economists.
    3. Schader, Christian & Lampkin, Nicolas & Christie, Mike & Stolze, Matthias, 2011. "How cost-effective are direct payments to organic farms for achieving environmental policy targets?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115991, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Common Agricultural Policy; Organic farming; Program for Rural Development; Agricultural Sector Modelling;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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