We develop an empirical farmland allocation model based on explicit profit functions that is linked to a market demand model. The model accounts for corner solutions, enabling estimation with disaggregated data, and thereby allows treating prices as exogenous. The integrated model enables...

The European Union’s Emission Trading Scheme (EUETS) and the current renewable resource program provide strong incentives to use agricultural crops either for combustion in power plants to produce electricity and heat or as a feedstock for transportation fuels. In this paper we examine the...