Modeling the efficiency of the agri-environmental payments to Czech agriculture in a CGE framework incorporating public goods approach

Capturing agricultural multifunctionality challenges agricultural economists for more than a decade. On one hand, researchers increasingly build in their commodity based models provision of environmental protection and landscape maintenance, on the other hand, there are efforts as contingence valuation to assess the economic value of environmental benefits provided by agriculture. This paper and the corresponding research tries to merge the both research streams by incorporating supply and demand of landscape public good in the CGE framework. The former is done by including an explicit sector of joint commodity and noncommodity production in the model structure, the latter by extending the household demand system of willingness to pay for landscape. The approach is tested on four scenarios which are extensively compared