We develop a agricultural model assuming that conventional production is causing environmental externalities while more benign alternative production methods generate non-market amenity benefits and obtain a price premium in the marketplace. We analyze policies targeting external benefits and...

Studies on liberalisation normally do not take into account the external benefits and costs of agriculture. Empirical studies on the valuation of externalities should be integrated into quantitative modelling. MULTSIM is a national supply model of agriculture. Besides commodity output the model...