Sustainability of crop and livestock dominant dryland system of Alentejo region: do they have large differences in economic returns and environmental consequences?

Abstract

This paper presents a case study with two traditional Mediterranean-type farming systems: grazing dominant and cropping dominant, of the Alentejo region of Portugal. Farming systems traditional of the Alentejo area and of the Mediterranean region are compared in terms of economic returns, environmental impacts and trade-offs. Methodological aspects for environmental impacts evaluation during cradle-to-gate of a product are assessed through two tools: Life Cycle Assessment and Input-Output analysis with environmental accounts. These tools reveal and quantify environmental occurring within supply chain of a good or service and define a solid base for their environmental performances assessment. The application of these two tools is believed to yield more benefits than if used separately. Such combination delivers solid results that can be used for an economic evaluation of environmental impacts. For each farming system it is developed a linear programming model that emphasizes the biology and economics of the farming systems. The objective function is profit maximization, subject to managerial, resource and environmental constraints. Shadow prices are compared for both cropping systems to evaluate cost and efficiency of policies that constrains environmental consequences and promote sustainability.