Positive mathematical programming (PMP) has renewed the interest in mathematical 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.
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de Frahan, B.H. et al. (2007). Positive Mathematical Programming for Agricultural and Environmental Policy Analysis: Review and Practice. In: Weintraub, A., Romero, C., Bjørndal, T., Epstein, R., Miranda, J. (eds) Handbook Of Operations Research In Natural Resources. International Series In Operations Research amp; Mana, vol 99. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-71815-6_8
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