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MULTIFUNCTIONAL AGRICULTURE AND THE PRESERVATION OF ENVIRONMENTAL BENEFITS / доклад на 25 конференции IAAE, Reshaping Agriculture’s Contribution to Society, International Convention Centre, Durban, South Africa, 16-23 August 2003

Опубликовано на портале: 30-11-2003
In this article, we investigate welfare economic aspects of multifunctional agriculture, putting emphasis on the provision of rural environmental benefits. The formal analysis shows that the efficiency prices of agricultural and forest land include important amenity and non-use values that exhibit the character of undepletable externalities. Thus, to achieve a socially optimal land allocation these externalities must be internalised. We propose the compensation to agricultural and forest managers according to the marginal external benefit of their land, and a charge-subsidy scheme to improve rural water quality. Altogether, this is consistent with the requirement of optimal land allocation and would not cause additional market distortions. Moreover, it would leave the property right on the land and landscape benefits with the farmers, and assign the right on clean air and water to the consumers.

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