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Incorporating environmental impacts into value added from organic and conventional farming

Huhtala, Anni and Marklund, Per-Olov (2005) Incorporating environmental impacts into value added from organic and conventional farming. Paper at: The American Agricultural Economics Association annual meeting, Rhode Island, July 24-27, 2005.

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Online at: http://agecon.lib.umn.edu/cgi-bin/pdf_view.pl?paperid=16281&ftype=.pdf

Summary

We aim to improve the policy relevance of the aggregate welfare indicators regarding the economic and environmental features of farming practices. First, an analytical framework for measurement of environmentally adjusted net national product for agricultural sector is provided. Second, shadow pricing of direct disutility of environmental deterioration is illustrated with implications of the Finnish water protection policy measures restricting the use of manure on conventional and organic livestock farms during the period 1994-2002. Our simulated shadow prices per cubic meter manure are quite considerable reflecting the potentially high opportunity costs in terms of value added forgone if the only option to comply with regulation is to cut output. In practice, the organic farms seem to comply well with current regulation, and the environmentally harmful contibution of conventional farms to welfare is relatively small.


EPrint Type:Conference paper, poster, etc.
Type of presentation:Paper
Keywords:national income accounting, environmental performance, technology choices
Subjects: Environmental aspects
Research affiliation: Sweden
Finland > MTT Agrifood Research
Related Links:http://agecon.lib.umn.edu, http://tripunix.mtt.fi/cgi-bin/thw/?%24%7BBASE%7D=arktui&%24%7BHTML%7D=poimvapdocu_eng&%24%7BOOHTML%7D=docu_eng&%24%7BSNHTML%7D=nosyn_eng&%24%7BANDOR%7D=or&%24%7BTRIPSHOW%7D=format%3Dwww_eng&NR=+307-10
Deposited By: Koistinen, Riitta
ID Code:8452
Deposited On:04 May 2006
Last Modified:12 Apr 2010 07:33
Document Language:English
Status:Published
Refereed:Not peer-reviewed

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