A LAND DEMAND AND SUPPLY SYSTEM WITH ENDOGENOUS LAND PRICES IN THE CAPRI AGRICULTURAL SECTOR MODEL
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Questions about land use change induced by policies impacting the agricultural sector such as
bio-fuel mandates have clearly raised the interest of understanding to which extent changes in
agricultural productions stem from the extensive margins – expansion of agricultural land
cover – or from the intensive margin – changes in the special intensity which increase yields
or stocking rates. Agricultural sector models being able to answer these questions in a
consistent manner are still rare. In this paper, we develop a land demand and supply system
with endogenous land prices in the CAPRI agricultural sector model.