Valuation of Public Goods: The Case of Emissions from Livestock Holdings in the Czech Republic

Michal MalýPavlína HálováMichaela HavlíkováZdeňka Žáková-Kroupová

DOI 10.7160/aol.2017.090109
No 1/2017, March
pp. 99-111

Malý, M., Hálová, P., Havlíková, M., and Žáková-Kroupová, Z. (2017) “Valuation of Public Goods: The Case of Emissions from Livestock Holdings in the Czech Republic", AGRIS on-line Papers in Economics and Informatics, Vol. 9, No. 1, pp. 99 - 111. ISSN 1804-1930. DOI 10.7160/aol.2017.090109.

Abstract

Designed paper is focused on the analysis of public goods in the form of greenhouse gas emissions in livestock production in Czechia. The main aim of the paper is to quantify the amount and valuation of greenhouse gas emissions produced in beef cattle breed (dairy and meat), pig breed, and poultry breed (meat and eggs). The partial aim of this paper is to compare greenhouse gas emissions production across sectors of livestock production and to evaluate a development of volume, value and share of emissions as a form of public goods. The methodology is based on the conceptual model MITERRA-Europe (The model was developed to assess the effects and interactions of policies and measures in agriculture on N losses and P balances at a regional level in EU-27), which is partly based on the CAPRI (Common Agricultural Policy Regionalised Impact) and the GAINS (Greenhouse Gas and Air Pollution Interactions and Synergies) models using the tools for quantification of the emission factors indicators defined by the IPCC (Intergovernmental Panel for Climate Change) organizations. Part of the solution is to determine the value of public goods quantified through a European platform for carbon emissions trading with its futures contract based on the EU Allowances. The result of this paper is quantified emission value of public goods in livestock production in Czechia and their appreciation in the period 2000-2014. In the final consequence is quantified the proportion of the value of public goods in the total production of the analyzed livestock sector.

Keywords

Public goods, greenhouse gas, emissions, valuation, livestock, polluter, emission factor, conversion ratio, agriculture, willingness to pay.

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