Structural Agricultural Land Use Modeling for Spatial Agro-Environmental Policy Analysis

Fezzi, C and Bateman, IJ (2011) Structural Agricultural Land Use Modeling for Spatial Agro-Environmental Policy Analysis. American Journal of Agricultural Economics, 93 (4). pp. 1168-1188. ISSN 0002-9092

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Abstract

This paper develops a spatially disaggregated, structural econometric model of agricultural land use and production based on the joint multi-output technology representation introduced by Chambers and Just (1989). Starting from a flexible specification of the farm profit function, we derive land use allocation, input application, crop yield, and livestock intensity equations in a joint and theoretically consistent framework. To account for the presence of censored observations in micro-level data, the model is estimated as a system of two-limit Tobit equations via quasi-maximum likelihood. We present an empirical application using fine-scale spatial data covering the entirety of England and Wales and including the main economic, policy, and environmental drivers of land use change in the past forty years. A simulation of the effects of diffuse pollution reduction measures illustrates how our approach can be applied for agro-environmental policy appraisal.

Item Type: Article
Faculty \ School: Faculty of Science > School of Environmental Sciences
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Depositing User: Users 2731 not found.
Date Deposited: 14 Sep 2011 11:02
Last Modified: 21 Apr 2020 16:35
URI: https://ueaeprints.uea.ac.uk/id/eprint/34805
DOI: 10.1093/ajae/aar037

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