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Environmental amenities and optimal agricultural land use: The case of Israel |
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| Authors: | Iddo Kan David Haim Mickey Rapaport-Rom Mordechai Shechter |
| Institution: | a Department of Agricultural Economics and Management, The Robert H. Smith Faculty of Agriculture, Food and Environment, The Hebrew University of Jerusalem, P. O. B. 12, Rehovot 76100, Israel b Department of Agricultural and Resource Economics, Oregon State University, 1482 NW 20th Corvallis, OR 97330, USA c Natural Resource and Environmental Research Center, University of Haifa, Mt. Carmel, Haifa, 31905, Israel d Department of Economics, University of Haifa, Mt. Carmel, Haifa, 31905, Israel |
| Abstract: | This paper evaluates the effectiveness of changing land allocation among crops as a mechanism for increasing net-social benefits, where production profits and amenity values are augmented. A positive mathematical programming model is calibrated and applied to 43 regions in the northern part of Israel, using a crop-discriminating amenity-value function. Changes in land allocation increase net-social benefits by 2.4% nationwide and by up to 15% on the regional level, where in some regions the net-social-benefits-increase/profit-loss ratio exceeds 20. Therefore, the results indicate that a policy encouraging amenity-enhancement of agricultural land use is warranted, provided that it is implemented on a regional scale, rather than as a comprehensive nationwide-enforced program. |
| Keywords: | Q10 Q24 Q50 |
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