While seafood is a highly traded commodity, lack of data has largely prevented examination of the firms and industries that are conducting the actual transactions. In this paper we use highly disaggregated data to provide an overview of the seafood exports from Norway, the world’s 2nd largest seafood exporting country, and a country where fisheries as well as aquaculture are important industries. The industry has a global reach with Norwegian seafood reaching 172 different countries in the period 2016–2020. While there are as many as 437 different exporting firms, this is relatively few firms compared to the 11,024 different buyers that import Norwegian seafood. There is significant heterogeneity in the export sector from very small firms handling only a few products to very large firms handling a large variety of products. The average firm is quite specialized and serves only 9 markets. However, there are also a handful of large exporters who ship products from all three main sectors in the Norwegian seafood industry to a large number of markets. The 10% largest companies make up 39% of the total export value and provide significant synergies between the aquaculture, pelagic and whitefish sectors.
Siden 1970-tallet har det vært en rivende utvikling innenfor handelsteori, motivert av empiriske observasjoner som ikke har passet med den klassiske teorien om komparative fortrinn. Ved komparative fortrinn drives handelen av forskjeller mellom land, og det utveksles varer som tilhører ulike næringer. Hva forklarer da den stadig økende handelen med liknende varer (som ølmerker) mellom liknende land (som Sverige og Danmark)? Og hvorfor domineres handelen av relativt få bedrifter, mens de fleste holder seg i hjemmemarkedet? Artikkelen ser nærmere på nyere handelsteori som kan bidra til å forklare slike observasjoner. Handel gjør det lettere å utnytte stordriftsfordeler i produksjon av differensierte varer innenfor en næring. Teorien viser at dette skaper gevinster ved handel som er uavhengig av komparative fortrinn. Et banebrytende trekk ved nyere teori er at produksjon og handel modelleres på bedriftsnivå. Ved å bringe inn forskjeller i produktivitet mellom bedrifter, skapes en ramme for å studere karakteristika ved bedrifter som opererer i internasjonale markeder. Tilgang til handelsdata på transaksjonsnivå – mellom kjøper og selger – har i tillegg åpnet et nytt univers for empiriske studier. I artikkelen gjennomgås og forklares noen viktige bidrag innenfor nyere handelsteori. Trekk ved norsk næringsstruktur drøftes avslutningsvis i lys av nyere handelsteori.
Straume, Hans-Martin; Anderson, James L., Asche, Frank & Gaasland, Ivar (2020)
Delivering the goods: The determinants of Norwegian seafood exports
Seafood is the world’s most traded food product. In recent years, aquaculture has become an increasingly important part of seafood production, facilitating increased trade. However, despite evidence that fish farmers have better ability to target markets and ship their seafood through more efficient supply chains (due to the higher degree of control with the production process), little attention has been given to the fact that this is likely to influence trade patterns as well. This article investigates if trade margins for aquaculture products differ from trade in wild seafood products along three margins of trade, in addition to total export value on export data for Norway, the world’s second largest seafood exporting country. The results indicate aquaculture products are different. In particular, aquaculture products are influenced by more factors than fisheries products (such as transportation costs and per-unit shipment costs), highlighting another dimension where the control of the production process can be used to improve competitiveness. Moreover, exports of aquaculture products increase with a country’s wealth level, reflecting producers’ ability to target higher paying markets.
Gaasland, Ivar (2020)
Verdikjeden for mat - importbeskyttelse eller konkurranse?
Geographical concentration of industries tends to be important for firms that depend on innovation and are intensive in the use of specialized technology and labor. In this paper, we investigate the interaction between agglomeration and trade performance in the Norwegian aquaculture industry. We include a variable for regional clustering in a standard gravity model and estimate its impact on different margins of trade. When controlling for destination country, we find that firms that operate in clusters obtain higher export prices and ship more frequently and in smaller bulks. For a highly perishable product like fresh salmon, this may suggest that firms in clusters are served by more efficient supply chains bringing the product to market with timely and efficient logistics.
While variation in unit value most commonly has been associated with quality in the trade literature, observed differences in prices between markets might also be explained by variation in market concentration and the degree of competition. Using transaction data on Norwegian exports of salmon, we introduce a Herfindahl index as a measure of competition in a standard gravity model. We find that competition typically is weaker in small and distant markets that due to high trade costs are served by relatively few firms. We argue that the anti-competitive impact of trade costs may explain price differentiation between markets even for homogeneous products.
Blandford, David; Gaasland, Ivar & Vårdal, Erling (2018)
Greenhouse Gas Emissions, Land Use, and Food Supply under the Paris Climate Agreement—Policy Choice in Norway
In recent years, trade dynamics have been receiving increased attention, and the general literature indicates that commodities are different. In this paper, the duration of trade relationships for Norwegian export firms to various markets is investigated for six product forms of one commodity, cod. The results indicate that the duration of most trade relationships is very short, and shorter than what is normally reported in the literature. Still, the substantial variation in duration by product form and factors influencing it, indicates heterogeneous dynamics for each supply chain even for slight differences in the characteristics of a commodity. Moreover, the short duration of trade relationships in the supply chains for Norwegian cod indicates that they remain very traditional food supply chains, with few attempts at reducing transaction costs through vertical coordination or relationships.
Bøndene hevder at jordbruket må skjermes mot klimatiltak som rammer norsk matforsyning,målt ved selvforsyningsgraden. Ved å endre sammensetningen av jordbruksstøtten i favør av matvarer som forurenser lite i forhold til næringsinnhold, viser vi at klimagassutslippene fra norsk jordbruk kan kuttes mye, eksemplifisert ved 40%, uten at elvforsyningsgraden svekkes og samtidig som budsjettutgiftene kan reduseres kraftig. Politikkendringen vil i tillegg bringe kostholdet mer i retning av de offisielle kostrådene til Helsedirektoratet, som anbefaler at vi spiser mindre rødt kjøtt og mer planteprodukter og fisk. Resultatene gir støtte til synspunkter i grønn skattekommisjon om at klimautfordringene også må reflekteres i jordbrukspolitikken.
Blandford, David; Gaasland, Ivar & Vårdal, Erling (2015)
Greenhouse gas abatement in agriculture - Is there a conflict with food security?
A new round of trade negotiations under the World Trade Organization (WTO) was launched in 2001. One of the major aims of the Doha Development Round is to reduce agricultural protection and impose greater discipline on domestic agricultural subsidies, particularly those that are most trade distorting. In this article, we examine whether the proposed WTO modalities for agriculture will actually achieve this aim in the case of Norway. Norwegian agriculture, which accounts for less than one per cent of GDP and three per cent of domestic employment, is among the most heavily protected in the world (NILF, 2007). The OECD's producer support estimate for Norway was 62 per cent in 2008, the highest among the Organization's member countries (OECD, 2009). Norway has a complex system of farm subsidies involving deficiency payments, structural income support, acreage and headage payments, and a range of indirect supports. The system is buttressed by substantial import protection, which limits market access. Consequently, the extent to which Norway will have to change its agricultural support policies in response to new WTO disciplines provides an important indicator of how successful theese are likely to be.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2008)
Optimal provision of public goods: implications for support to agriculture
, s. 171- 181.
Vårdal, Erling & Gaasland, Ivar (2007)
Vestlandsbonden som produsent av fellesgoder
, s. 314- 330.
Brunstad, Rolf Jens & Gaasland, Ivar (2006)
WTO og norsk jordbruk: Liv laga eller kroken på døra?
60(1) , s. 37- 47.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2005)
Multifunctionality of agriculture: an inquiry into the complementarity between landscape preservation and food security
32(4) , s. 469- 488.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2005)
Efficiency losses in milk marketing boards - the importance of exports
31(2) , s. 77- 97.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2005)
Multifunctionality of agriculture: an inquiry into the complementarity between landscape preservation and food security
32(4) , s. 469- 488.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2005)
Efficiency losses in milk marketing boards - the importance of exports
31(2) , s. 77- 97.
A milk marketing board (MMB) is a well known instrument for regulating the markets for dairy products. MMBs are based on price discrimination, and receipts from sales are pooled so that the farmers receive a single price adjusted for composition and quality. Using a numerical model, we find that the economic welfare cost of the Norwegian MMB, is as much as 26.3% of the milk production value. This computed cost is far larger than for the other countries with MMBs. The main reasons are that exports are a major ingredient of the Norwegian system, and that production costs are very high.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2005)
Efficiency losses in milk marketing boards - the importance of exports
31(2) , s. 77- 97.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2001)
Deregulation of the Norwegian Market for Dairy Products
, s. 173- 187.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2001)
Deregulation of the Norwegian Market for Dairy Products
, s. 173- 187.
Vårdal, Erling; Brunstad, Rolf Jens & Gaasland, Ivar (2001)
Multifunctionality of agriculture: An inquiry into the complementarity between landscape preservation and food security
Vårdal, Erling; Brunstad, Rolf & Gaasland, Ivar (2000)
Deregulation of the Norwegian market for dairy products
Vårdal, Erling; Brunstad, Rolf & Gaasland, Ivar (2000)
Deregulation of the Norwegian market for dairy products
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1999)
Agricultural production and the optimal level of landscape preservation
75(205) , s. 538- 546.
It is often asserted that agricultural land yields significant amenity benefits that could be used as a rationale for some of the substantial support to agriculture occuring in many industrialized countries. This paper introduces a method for incorporating information on the willingness to pay for landscape preservation gained from contingent valuation studies in the objective function of a price-endogenous, mathematical programming model for the agricultural sector. Optimal levels of support, production, land use, and employment an then be calculated. The method is illustrated using data from Sweden and four U.S. Communities, and a programming model for the Norwegian agricultural sector.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1999)
Agricultural production and the optimal level of landscape preservation
75(4) , s. 538- 546.
Gaasland, Ivar & Vårdal, Erling (1998)
Tariff or quota protection - A case study of the Norwegian apple market
30(Reprint) , s. 951- 957.
Tariffs and quotas are alternative trade instruments. In most cases i t has been shown that the use of tariffs results in a higher national welfare the use of quotas. Most of the research in this field has be en purely theoretical. This paper aims to give an empirical contribut ion. Referring to the Norwegian apple market, we analyse the effects of tarrifs and quotas. A trariff system is estimated to be slightly m ore efficient than a quota system (+2%). However, the distributional effects are substantial. Wholesalers and importers are main gainers i n quota system, while consumers and farmers are losers.
Vårdal, Erling; Gaasland, Ivar & Brunstad, Rolf (1995)
Utvikling eller avvikling - jordbruket ved en skillevei
At ressursbruken i forbindelse med jordbrukspolitikken tas opp til kr itisk vurdering, er absolutt på tide. Norge ligger i verdenstoppen nå r det gjelder støtte til jordbruket, og ressursbruken i jordbruket fo rtrenger andre viktige samfunnsoppgaver. En hovedårsak til de høye ko stnadene er de mange ambisiøse målene for jordbrukspolitikken. I Utvi kling eller avvikling - jordbruket ved en skillevei drøftes holdbarhe ten til de ulike argumentene som benyttes for å sikre jordbruket særv ilkår. Det konkluderes med at det stort sett bare er eksistensen av k ollektive goder som matvaresikkerhet og kulturlandskap som kan forsva re offentlige inngrep i jordbrukssektoren. Men målene knyttet til pro duksjon av kollektive goder gir ikke grunnlag for verken den formen e ller det nivået som jordbruksstøtten har i dag. De kollektive godene kan tilbys mye billigere til samfunnet og med en betydelig lavere pro duksjon, syssel setting og arealbruk enn i dag. Dette krever en kraft ig og hurtig omlegging av jordbrukspolitikken. I boken skisseres de n ødvendige skritt i riktig retning.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1994)
Inntekter, sysselsetting og omstillinger
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1994)
Norges medlemsskapsavtale med EU på landbruksområdet
48(7/8) , s. 14- 21.
Gaasland, Ivar & Vårdal, Erling (1994)
Prisstabilisering i jordbruket
108, s. 173- 188.
Gaasland, Ivar (2017)
Makten over melken
[Kronikk]
Gaasland, Ivar (2016)
Eksportsubsidier - hva har vi lært?
[Kronikk]
Gaasland, Ivar (2016)
Fremtidsbonden
[Kronikk]
Gaasland, Ivar (2016)
Debatt om jordbruk Ytring NRK Radio
[Kronikk]
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2013)
Bondekannibalisme
[Kronikk]
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2011)
Gaasland, Ivar; Vårdal, Erling & Blandford, David (2018)
A New Deal for Norwegian Agriculture
Gaasland, Ivar; Vårdal, Erling & Blandford, David (red.). A New Deal for Norwegian Agriculture
Gaasland, Ivar; Vårdal, Erling & Blandford, David (2017)
Achieving GHG Emission Commitments and Food Security Objectives in Norwegian Agriculture
[Conference Lecture]. Event
Gaasland, Ivar & Gabrielsen, Tommy Staahl (2016)
Bruk av markeder og konkurranse i omsetning av matvarer – utfordringer og muligheter
[Report Research].
Rapporten drøfter samfunnsøkonomiske og konkurransepolitiske effekter av markedsreguleringene for jordbruksvarer. Det skisseres mulige endringer med tanke på effektivitetsforbedringer som kan kommer bønder, forbrukere og skattebetalere til gode. Mer markedsbaserte løsninger er et fellestrekk ved endringene som drøftes, men under ulike forutsetninger om importkonkurranse.
Gaasland, Ivar; Vårdal, Erling & Blandford, David (2016)
Now that the party’s over: achieving GHG emission commitments in Norwegian agriculture
[Conference Lecture]. Event
Vårdal, Erling; Blandford, David & Gaasland, Ivar (2012)
Everybody knows that the boat is leaking: How Norway thwarts its WTO commitments
[Report Research].
We conduct a WTO-consistent assessment of Norwegian agricultural programs and policy since 1995. Most important, we highlight cases where Norway has found ways to work around its WTO-commitments in order to avoid policy reform. On several occasions Norway has been on the edge of breaking the amber box commitment. In these cases, Norway’s response has been to abolish target prices on certain products, thereby excluding the corresponding market price support from the amber box calculation. In this way, Norway has been able to keep up production and forestall agricultural restructuring. Even if this is legal, it is clearly against the intensions of the WTO principles. We also argue that several of the entities put into green box are questionable. For example, the “Vacation and replacement scheme” seem to be amber support masked as green support.
Vårdal, Erling; Blandford, David & Gaasland, Ivar (2012)
GHG emission abatement strategy in Norwegian agriculture
[Conference Lecture]. Event
Vårdal, Erling & Gaasland, Ivar (2012)
Hvordan kutte utslippene fra jordbruket
[Popular Science Article].
Vårdal, Erling; Blandford, David, Gaasland, Ivar & Garcia, Roberto (2009)
How effective are WTO disciplines on domestic support and market access for agriculture?
[Report Research].
Mittenzwei, Klaus & Gaasland, Ivar (2008)
Dokumentasjon av Jordmod: Modellbeskrivelse og analyser
[Report Research].
Vårdal, Erling; Gaasland, Ivar & Garcia, Roberto (2008)
Norway: Shadow WTO Agricultural Domestic Support Notifications
[Report Research].
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2007)
Regional Aspects of Agriculture
[Report Research].
Prevention of depopulation in remote areas has traditionally been an important political goal in Western-European societies. This may be rationalized as follows: If the density of population in an area drops to very low levels, the cost of providing basic infrastructure may become prohibitively high. As long as total depopulation is undesireable, this is an argument for keeping the population density above some critical level. The most efficient way of achieving this goal would seem to be some general income support to all inhabitants in remote areas or a general wage sdubsidy to all industries and not support confined to a single industry. This paper introduces a method for incorporating information on the willingness to pay for regional activity in the objective function of a price-endogenous, mathematical programming model for the agricultural sector of Norway. Optimal levels of support, production, land use and activity in various regions are calculated. Our conclusion is that regional preferences do not affect the national activity level of agruculture, but affect the distribution of the activity level between regions.
Optimal agricultural policy and PSE measurement: an assessment and application to Norway
[Report Research].
The producer support estimate (the successor to the producer support equivalent) calculated by the OECD is widely used as an indicator of distortions created by agricultural policies. In this paper we demonstrate that changes in the relative (percentage) PSE are not an accurate indicator of the implications of policy reform for domestic welfare or for trade distortions. We demonstrate that it is important to consider the implications of changes in both the level and the form of support in evaluating the impact of policy reform. Using a model of Norwegian agriculture we show that reforms indicated towards the provision of public goods, while apparently leading to an increase in relative support, are actually superior to existing agricultural policies or to a policy aimed at eliminating subsidized exports both in terms of reducing trade distortions and increasing domestic economic welfare.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2007)
Optimal provision of public goods. Implications for support to agriculture
[Report Research].
This paper summarises a decade of research by the authors into the welfare economic foundations for agricultural policy. The main results are that the levels of support to agriculture in rich developed countries like Norway are way out of proportion with what could conceivably be defended by welfare theoretic arguments. However, the present debate on the multifunctional role of agriculture points to valid arguments for agricultural support. In terms of welfare economics these arguments are found in the links between agriculture and public goods like landscape amenities and food security. This paper offers a modest attempt to quantify the Pigouvian subsidies that could be derived from these arguments.
Brunstad, Rolf Jens & Gaasland, Ivar (2007)
Proteksjonisme, fattigdom og norsk landbrukspolitikk
[Professional Article]. (1) , s. 74- 83.
Vårdal, Erling; Brunstad, Rolf Jens, Gaasland, Ivar & Blandford, David (2007)
Optimal agricultural policy and PSE measurement
[Report Research].
Vårdal, Erling; Flåm, Sjur Didrik & Gaasland, Ivar (2006)
On Stabilizing or Deregulating Food Prices
[Report Research].
Vårdal, Erling; Brunstad, Rolf Jens & Gaasland, Ivar (2005)
Multifunctionality of agriculture: the complementarity between landscape preservation and food security
[Report Research].
Vårdal, Erling; Brunstad, Rolf Jens & Gaasland, Ivar (2003)
Efficiency losses in milk marketing boards - the importance of exports
[Report Research].
A milk marketing board (MMB) is a legislatively specified compulsory marketing institution, and a common way to regulate markets for dairy products. MMBs are based on price discrimination. As price discrimination leads to unequal profitability between products, receipts from sales are pooled and farmers receive a single price adjusted for composition and quality. It is well documented that price discrimination through MMBs incurs an efficiency loss to the society. Earlier contributions, Ippolito and Masson (1978) and Serck-Hansen (1979), point to the fact that a particular high loss is incurred if export of dairy products is included in the MMB. It proves difficult to find examples where this is the case. MMB countries are either large with a low export share in dairy products (USA and Japan), have economies of scale (Australia) or exports are excluded from the MMB arrangement (Canada). We find Norway to be the only example. Using a numerical model of the Norwegian agricultural sector we show that substantial efficiency gain may be achieved by deregulating the dairy sector, mainly due to the elimination of exports. It is estimated that a transition to cost based pricing may increase the economic surplus by 1.4 billion NOK, which is 25 % of the production value. This computed gain from deregulation is far larger than for the other MMB-countries.
Flåm, Sjur Didrik; Gaasland, Ivar & Vårdal, Erling (2001)
Equilibrium and price stabilization
[Report Research].
The main objective here are markets with stochastic demand and supply. Agriculture provide prime instances. A key concern is how a buffer agency may learn to stabilize prices. We model such learning and identify conditions under which the process may generate necessary input for comparative welfare analysis.
JORDMOD er en partiell likevektsmodell av det norske jordbruket utviklet for å kunne analysere konsekvenser av alternative utforminger av jordbrukspolitikken. På tilbudssiden har modellen 19 driftsformer som finnes i 6 størrelser og 9 regioner. Til sammen produseres 13 sluttprodukter og 8 mellomprodukter ved hjelp av innsatsfaktorer som areal, arbeidskraft, kapital, mellomprodukter og andre varer. Innenlandsk etterspørsel er representert ved lineære etterspørselsfunksjoner, mens import skjer til gitte verdensmarkedspriser. I modellen kan det knyttes subsidier til kriterier som antall dyr, antall dekar, antall årsverk og produksjon. I tillegg kan en beregne (endogent) de subsidiesatser som kreves for å oppfylle målsettinger knyttet til produksjon, arealbruk eller sysselsetting. Importvernet er modellert slik det er fastsatt i jordbruksavtalen i World Trade Organisation (tollsatser og minimumsimportkvoter). I meierisektoren er prisdiskrimineringen mellom produkter og markeder representert. Likevektsløsningen angir produksjon og faktorbruk, konsum og priser, eksport og import, subsidier og skjermingsstøtte, samt samfunnsøkonomisk overskudd, definert som summen av produsent- og konsumentoverskuddet, med fradrag av netto overføringer til jordbrukssektoren. Modellen er kalibrert med utgangspunkt i data for 1998. I forhold til tidligere modellversjoner er det tatt med flere driftsformer, som f. eks. kylling, økologisk melk, sau på innmarksbeite og produksjon av lyse kjøttslag uten eget spredeareal. Modellen fanger dermed bedre opp produksjonsmulighetene i jordbruket, også under rammebetingelser som avviker betydelig fra dagens. For øvrig er det foretatt en programmeringsmessig opprydding i modellen, slik at modellen fremstår som mer brukervennlig og oversiktlig. Rapporten viser også 4 eksempler på bruk av modellen. De to første beregningene viser ulike former for deregulering av norsk jordbruk, deriblant en avvikling av utjevningssystemet i meierisektoren, oppheving av konsesjonsregler og en sterk nedgang i støtte og importvern. De to siste beregningen forutsetter at sysselsetting og arealbruk til en viss grad skal opprettholdes, og illustrerer ulike måter å lese inn støtte på.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2001)
Agriculture as a provider of public goods
[Conference Lecture]. Event
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (2001)
Agriculture as a provider of public goods
[Conference Lecture]. Event
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1998)
Deregulation of the Norwegian market for milk products
[Report Research].
In this paper we use a price endogenous mathematical programming mode l to estimate the national welfare losses induced by the Norwegian da iry policy. Firstly, we focus on welfare losses at the processing lev el due to price discrimination between different uses of the milk and cross-subsidisation of export. Secondly, we focus on inefficiency at the farm level due to small-scale farm units and a distribution of p roduction that does not reflect regional comparative advantages. Thir dly, we demonstrate that employment in depressed areas can be u pheld at far lower costs if the processing industry is deregulated and the rural farmers are supported through more direct payments.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1998)
Deregulation of the Norwegian market for milk produkts
[Report Research].
In this paper we use a price endogenous mathematical model to estimat e the national welfare losses induced by the Norwegian dairy policy. Firstly w focus on welfare losses at the processing level due to pric e discrimination between different uses of the milk and cross-subsidi zation of export. Secondly, we focus on inefficiency at the farm leve l due to a small scale farm units and a distrubution of production wh ich does not reflect regional comparative advantages. Thirdly, we dem onstrate that employment in rural areas can be upheld at far lower co sts if the processing industry is deregulated and the rural farmers a re supported throug more direct payments.
Brunstad, Rolf Jens; Gaasland, Ivar & Vårdal, Erling (1997)
Agricultural production and the optimal level of landscape preservation
[Report Research].
Only market failures justify support to an industry in a welfare econ omic setting. The amenity value of the landscape can be treated as a public good. Agricultural production will have an effect on this valu e which is external to agriculture. Recent studies find that the will ingness to pay for landscape preservation (WTP) may be considerable a nd that the marginal willingnss to pay (MWP) decreases with the volum e and intensity of agricultural activity. In this paper we discuss wh ether the amenity benefits of the agricultural landscape justify the level and form of agricultural support in a high support country like Norway. Based on existing studies of WTP we infer the likely value o f parameters in a WTP function for Norway. We include this WTP functi on in the objective function of a price endogenous mathematical progr amming model for the Norwegian agricultural sector. Given no other su pport to agriculture than that generated by the MWP for landscape pre servation, the optimal size of Norwegian agriculture measured by empl oyment is less than 20% of the current level, while land use is betwe en 50% and 60% of today`s use. The simultation experiment indicates t hat only a minor fraction of today`s generous support would be upheld in optimum, while production would drop to low levels. But even if t he landscape preservation argument is not able to defend today`s leve l of production and employment, it may be strong enough to keep a maj or part of today`s agricultural surface under cultivation.
Hagen, Kåre Petter & Gaasland, Ivar (1997)
Oversikt over forskningsprogrammet i teleøkonomi ved SNF: 1992-1995
[Report Research].
Brunstad, Rolf; Gaasland, Ivar & Vårdal, Erling (1994)
Agriculture as a provider of public goods
[Report Research].
Vårdal, Erling; Gaasland, Ivar & Brunstad, Rolf (1994)
The transition of Norwegian agriculture to international market conditions: Consequences for landscape preservation
[Conference Lecture]. Event
Gaasland, Ivar & Vårdal, Erling (1994)
Tariff or quota protection - A case study of the Norwegian apple market
