When different technologies are present in an industry, assuming a homogeneous technologywill lead to misleading implications about technical change and inefficient policyrecommendations. In this paper a latent class modelling approach and flexible estimation ofthe production structure is used...

We provide a new approach for assessing the cost of marginal ecosystem changes and theeffectiveness of agri-environmental schemes. The approach is based on a theoretical andempirical analysis of the bio-economic production interactions between marketed outputs andnon-marketed ecosystem services...