We provide a new approach for assessing the cost effectiveness of green payment schemes. We allow for complementary, supplementary and competitive relationships between agricultural production and non-marketed ecosystem services generation. Our theoretical model distinguishes three theoretical...

In the present article a model system is presented to analyse agricultural change at farm and regional level. The core of the system is a linear programming (LP) model of the individual farm which includes an environmental component of the input and discharge of nitrogen and pesticides. Modules...

The economic literature on pest control exclusively assumes a non-negative marginal product of pesticides based on a monotonic non-decreasing function of damage abatement, which may bias pesticide productivity estimates. This paper proposes a specification that allows for a negative marginal...