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Targeted environmental policies for farmlands may improve the cost-efficiency of conservationprograms if one can identify the farms that produce public goods, or environmental outputs, withthe least cost. We derive shadow values of producing crop diversity on conventional and organiccrop farms to examine their opportunity costs of conservation. Non-parametric distance functionsare estimated by applying data envelopment analysis to a sample of Finnish crop farms for theperiod 1994 – 2002. Our results show that there is variation in the shadow values between farmsand the technologies adopted. The extent of cost heterogeneity and farms’ potential forspecialization in the production of environmental outputs determine whether voluntary programssuch as auctions for conservation payments are economically reasonable.

Keywords: biodiversity ; Shannon index ; DEA ; distance functions ; shadow values

Subject(s): Crop Production/Industries

Environmental Economics and Policy

Issue Date: 2011

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/114527

Total Pages: 25

JEL Codes: C21; D24; H41; Q12; Q24

Record appears in: European Association of Agricultural Economists (EAAE) > 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland





Autor: Sipilainen, Timo ; Huhtala, Anni

Fuente: http://ageconsearch.umn.edu/record/114527?ln=en







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