Cost efficient biodiversity production in the pastoral landscape - estimation of cost functions
2005
Nilsson, F.(Swedish Univ. of Agricultural Sciences, Uppsala (Sweden))E-mail:Frederik.Nilsson@ekon.slu.se
Same public goods can only be produced jointly with private goods. This paper focuses on the biological diversity that could be produced on semi-natural pastures through the assistance of grazing animals. The question that is being investigated is what shapes the total and marginal cost functions for biological diversity production on semi-natural pastures have if private goods are already being produced using livestock at farms near the pastures. The empirical analysis shows that a quadratic function describes the costs well and that the production is characterized by increasing marginal costs.
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