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Modelling socially optimal land allocations for sugar cane growing in North Queensland: a linked mathematical programming and choice modelling study
Author(s) -
Mallawaarachchi Thilak,
Quiggin John
Publication year - 2001
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00149
Subject(s) - production (economics) , agriculture , choice modelling , natural resource , agricultural land , land use , sugar cane , resource allocation , natural resource economics , resource (disambiguation) , range (aeronautics) , economics , agricultural productivity , sugar production , environmental economics , agricultural economics , environmental resource management , sugar , business , environmental science , geography , computer science , ecology , agricultural science , engineering , microeconomics , civil engineering , aerospace engineering , computer network , archaeology , biology , marketing , market economy , chemistry , biochemistry
A modelling framework is developed to determine the joint economic and environmental net benefits of alternative land allocation strategies. Estimates of community preferences for preservation of natural land, derived from a choice modelling study, are used as input to a model of agricultural production in an optimisation framework. The trade‐offs between agricultural production and environmental protection are analysed using the sugar industry of the Herbert River district of north Queensland as an example. Spatially‐differentiated resource attributes and the opportunity costs of natural land determine the optimal trade‐offs between production and conservation for a range of sugar prices.