Abstract

Agriculture is not any more viewed only as an industry ensuring nutrition of population, but also its non-production benefit has growing importance. This holds especially for the areas with extensive agriculture, where main product of agriculture is landscape preservation and restoration, and other environmental and social benefits, and where agricultural production is neither main objective nor source of income of agricultural producers. Especially in Europe, where agriculture historically played an important role in landscape formation and determined the development of social structures in rural regions, becomes this non-production function of agriculture more and more important. For a possibility to assess multifunctionality of agriculture is necessary to analyse both production relationships between commodity and non-commodity outputs, and also externalities and public goods connected with this production. First part of the paper is devoted to methodological issues in connection with evaluation of multifunctionality of agriculture, with emphasis on theoretical framework of externalities evaluation. In the following part is presented methodological approach for externalities internalisation at the regional level, coming from supply side.

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