Abstract
It is often asserted that agricultural land yields significant amenity benefits that could be used as a rationale for some of the substantial support to agriculture occurring in many industrialized countries. This paper introduces a method for incorporating information on the willingness to pay for landscape preservation gained from contingent valuation studies in the objective function of a price-endogenous, mathematical programming model for the agricultural sector. Optimal levels of support, production, land use, and employment can then be calculated. The method is illustrated using data from Sweden and four U.S. communities, and a programming model for the Norwegian agricultural sector.
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