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Abstract
Capturing agricultural multifunctionality challenges agricultural economists for more than a
decade. On one hand, researchers increasingly build in their commodity based models
provision of environmental protection and landscape maintenance, on the other hand, there are
efforts as contingence valuation to assess the economic value of environmental benefits
provided by agriculture. This paper and the corresponding research tries to merge the both
research streams by incorporating supply and demand of landscape public good in the CGE
framework. The former is done by including an explicit sector of joint commodity and noncommodity
production in the model structure, the latter by extending the household demand
system of willingness to pay for landscape. The approach is tested on four scenarios which are
extensively compared.