Marginal cost estimation of agricultural output and ecosystem services

Enikő Vígh, Krisztina Miskó and József Fogarasi

No 289716, 172nd EAAE Seminar, May 28-29, 2019, Brussels, Belgium from European Association of Agricultural Economists

Abstract: Agricultural ecosystems deliver food, fibre, pharmaceuticals, bioenergy and are fundamental to human wellbeing. In Hungary main measures targeting the sustainable use of agricultural land in New Hungary Rural Development Programme (NHRDP) are: Agri-Environment Payments and payments to Less Favoured Areas. Based on theoretical assumptions, the delivery of different ecosystem services (e.g. soil fertility, pest control) may be typical of one product–product connection, but farms can deliver multiple services which by themselves are produced in non-separable packages. In this study we employ a transformation function with multiple outputs and inputs, representing the maximum output producing possibility from a given input and with given conditions using generalised linear regression. Given the limited options to implement the overall policy coherence of ecosystem conservation, the presented work contributes to knowledge of decisionmakers, whose need to take into account the heterogeneity of farms and corresponding ecosystem services on farm territory.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2019-05-29
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa172:289716

DOI: 10.22004/ag.econ.289716

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