A METHOD FOR MULTIPLE EVALUATION OF AGRICULTURE

1993 Fiscal Year Final Research Report Summary

• Project/Area Number: 04660235
• Research Category: Grant-in-Aid for General Scientific Research (C)
• Allocation Type: Single-year Grants
• Research Field: Agro-economics
• Research Institution: CHIBA UNIVERSITY
• Principal Investigator: SUGIMOTO Yoshiyuki CHIBA UNIV., FACULTY OF HORTICULTURE,LECTURER, 園芸学部, 講師 (70162899)
• Co-Investigator(Kenkyū-buntansha): SAITO Katsuhiro CHIBA UNIV., FACULTY OF HORTICULTURE,ASSOCIATE PROFESSOR, 園芸学部, 助手 (80225698)
• Project Period (FY): 1992 – 1993
• Keywords: SHADOW PRICE / MULTIPLE EVALUATION OF AGRICULTURE / DEDONIC APPROACH

Research Abstract

The purpose of this study is to establish the method of environmental evaluation. In this study, we consider the value of externarity as the deference between shadow prices and market prices. In this point of view, the problem we must solve is to establish how to estimate shadow prices. So, in first part of this study, we derive the formulation of shadow prices for tradable goods, non tradable goods and primary factors from constructing general equilibrium model. This is the first step towards establishment of more general method of environmental evaluation.
In second part of this study, we examine the hedonic approach. Two alternative specifications of the hedonic land price function are provided, the separate model in which farm land and green space are treated as different variables and the combined model in which the two variables are combined into one variable. The hypothesis that the two variables have the same environmental attributes is rejected by the hypothesis testing using the estimation results of the two models. The separate model reveals that, whereas green space is an amenity, farm land is a dis-amenity for the urban residents. We also found that the value of estimation depends heavily on a specification of hedonic price function and other assumptions.