Positive mathematical programming for agricultural and environmental policy analysis: Review and practice

Abstract

Positive mathematical programming (PMP) has renewed the interest in mathe-matical modelling of agricultural and environmental policies. This chapter explains first the main advantages and disadvantages of the PMP approach, followed by a presentation of an individual farm-based sector model, called SEPALE. The farm-based approach allows the introduction of differences in individual farm structures in the PMP modelling framework. Furthermore, a farm-level model gives the possibility of identifying the impacts according to various farm characteristics. Simulations of possible alternatives to the implementation of the Agenda 2000 mid-term review illustrate the value of such a model. This chapter concludes with some topics for further research to resolve some of the PMP limitations.