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| Feinerman, Eli; Gardebroek, Cornelis. |
| In order to stimulate organic farming governments generally use a mix of temporary hectare payments and provision of public services for stimulating the development of the organic sector. In this paper a conceptual model is developed for determining a socially optimal hectare payment for any given level of public services. Farm heterogeneity, due to the variability of soil quality and management skills, is explicitly taken into account. Using an n-th price auction mechanism farmers indicate what their reservation subsidy is for a given level of public input provision. The outcome of this problem is utilized in the government's optimization problem. We found that the level of per hectare socially optimal subsidy increases significantly with the elasticity... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Auctions; Organic farming; Policy mix; Agricultural and Food Policy; Q28; Q12. |
| Ano: 2005 |
URL: http://purl.umn.edu/24723 |
