Environmental Amenities and Optimal Agricultural Land Use: The Case of Israel

Iddo Kan (iddo.kan@mail.huji.ac.il), David Haim, Mickey Rapaport-Rom and Mordechai Shechter (shechter@econ.haifa.ac.il)

No 42832, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: This paper evaluates the effectiveness of changing land allocation among crops as a mechanism for increasing social welfare, where production profits and amenity benefits are augmented. A positive mathematical programming model is calibrated and applied to the northern part of Israel, using a crop-discriminating amenity-benefits function. Changes in land allocation increase social welfare by 2.4% nationwide, and by up to 15% on the regional level. Regional scale farming-profit losses amount to up to 6%. Due to the decreasing-return-to-scale nature of the amenity-benefits function, the inter-regional variability appears sensitive to the manner in which the country is divided into regions.

Date: 2008
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Citations: View citations in EconPapers (2)

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Journal Article: Environmental amenities and optimal agricultural land use: The case of Israel (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:42832

DOI: 10.22004/ag.econ.42832

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