Economical and environmental trade-offs of traditional Mediterranean dry farming systems in the Alentejo region of Portugal.

Abstract

This paper aims assessing the economic and environmental trade-offs of traditional Mediterranean dry farming systems in the Alentejo region, southern Portugal. An environmental analysis using environmental indicators, such as the nitrogen balance, energy input, greenhouse gas emissions, acidification, eutrophication impacts, as well as an aggregated eco-indicator were developed. For assessing economic returns of farming systems, a budgeting analysis was carried out. Then the environmental and economic analysis was integrated in a linear programming model which was developed for a regional farm type. This model was used to assess the farm net profit under different policy measures, as well as to obtain the economic trade-off of each environmental indicator through its dual solution regarding the respective shadow prices. Results show that farm net profit greatly varies among crops for the different policy scenarios considered and the economic and environmental trade-offs highlights the important role other crops than cereals in rotations for promoting the sustainability of Mediterranean crop system.