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ANALIZING WATER FRAMEWORK DIRECTIVE IMPACTS USING A MULTINOMIAL LOGIT LAND USE MODEL AgEcon
Fezzi, Carlo; Bateman, Ian J.; Day, Brett H.; Posen, Paulette; Rigby, Dan.
We develop a two-stage, multinomial logit model of UK land use to investigate the impact of policy changes upon agriculture. The model utilizes a large panel database covering the entirety of England and Wales for 14 years between 1969 and 2004 integrated with the economic and physical environment determinants of all major agricultural land use types. Our model performs well in out-of-sample prediction of current land use and we use it to assess a proposed implementation of the Water Framework Directive via a tax on fertilizer. Results indicate that such policy change would generate substantial switching from arable to grassland systems, reducing significantly the amount of nitrate leaching into UK water-bodies.
Tipo: Conference Paper or Presentation Palavras-chave: Water Framework Directive; Land use models; Discrete choice models; Multinomial logit; Agricultural and Food Policy; Land Economics/Use; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6666
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Interaction of European Carbon Trading and Energy Prices AgEcon
Bunn, Derek W.; Fezzi, Carlo.
This paper addresses the economic impact of the EU Emission Trading Scheme for carbon on wholesale electricity and gas prices. Specifically, we analyse the mutual relationships between electricity, gas and carbon prices in the daily spot markets in the United Kingdom. Using a structural co-integrated VAR model, we show how the prices of carbon and gas jointly influence the equilibrium price of electricity. Furthermore, we derive the dynamic pass-trough of carbon into electricity price and the response of electricity and carbon prices to shocks in the gas price.
Tipo: Working or Discussion Paper Palavras-chave: Carbon Emission Trading; Energy Markets; Structural VECM; Resource /Energy Economics and Policy; Q48; L94; C32.
Ano: 2007 URL: http://purl.umn.edu/9092
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Structural Agricultural Land Use Modelling AgEcon
Fezzi, Carlo; Bateman, Ian J..
This paper develops a structural econometric model of agricultural land use and production based on the joint multi-output technology representation introduced by Chambers and Just (1989). Starting from a flexible specification of the farm profit function we derive land use allocation, input applications, crops yield and livestock number equations in a joint and theoretically consistent framework. We present an empirical application using fine-scale spatial data covering the entirety of England and Wales and including the main economic, policy and environmental drivers of land use change in the past 40 years. To account for the presence of censored observations in this micro-level data we estimate the model as a system of two-limits Tobit equations via...
Tipo: Conference Paper or Presentation Palavras-chave: Land Use; Structural Econometric Modelling; Agro-Environmental Policy; System of Censored Equations; Multivariate Tobit; Quasi-Maximum Likelihood.; Environmental Economics and Policy; Land Economics/Use; Research Methods/ Statistical Methods; Q15; Q53; C34..
Ano: 2009 URL: http://purl.umn.edu/51423
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