Efficient Supply of Cultural Landscape in a CGE Framework

K.L. Rodseth

No 44170, 2008 International Congress, August 26-29, 2008, Ghent, Belgium from European Association of Agricultural Economists

Abstract: It is often assumed that the agricultural sector produces public goods or positive externalities that benefit the domestic consumers, in addition to its production of private goods. Efficient agricultural support is consequently directed towards resolving market failures caused by the existence of these public goods or externalities. We illustrate how this can be achieved in a Computable General Equilibrium model for one multifunctional aspect of agricultural production, namely the production of cultural landscape. Using a public good modeling framework as point of departure, we develop supply- and willingness to pay functions for cultural landscape. Governmental agricultural support is adjusted to achieve efficient supply of the public good. As an illustration we apply our framework using a general equilibrium model for Norway. We show that efficient supply of cultural landscape can be achieved even with a tremendous reduction in initial overall support of agricultural production.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 9
Date: 2008
New Economics Papers: this item is included in nep-cmp, nep-cul and nep-pbe
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae08:44170

DOI: 10.22004/ag.econ.44170

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