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1 **************************** * MMMMMM M MMMM M M M M MMMM * * M M M M M M M M M M M * * MMMMM M M M M M M M M M * * M M M M M M M M M M M * * MMMMMM M MMMM MMMMMM M M MMMM * **************************** ************************** * Economic Evaluation Model for Organic Olive-Growing * * in Southern Italy * ************************** $TITLE BIOLIVO $OFFUPPER OFFLISTING OFFSYMLIST OFFUELLIST OFFSYMXREF OFFUELXREF OPTION LIMROW=0; OPTION LIMCOL=0; OPTION SYSOUT=OFF; OPTION SOLPRINT=OFF; OPTION ITERLIM=10000; OPTION DECIMALS=4; OPTION MIP=OSL; $ONTEXT The EU policy for agrochemical inputs use reduction: a comparison of current and potential policies in a rural area of Southern Italy Authors: G. Cicia, L. Cembalo, E. D'Ercole $OFFTEXT * Set definition * SETS I activities or crops /OLI, GRA, VIT, TAB, LEG, CER/ J alternative production assets /CO, BI, IN, IA1, IA2/ Z number of farms /Z1*Z45/ F no of farms bodies /F1*F10/ D decads /GENN1, FEB1*FEB3, MAR1*MAR3, APR1*APR3, MAG1, GIU1, LUG1, AGO1, SETT1*SETT3, OTT1*OTT3, NOV1*NOV3, DIC1 / L off-farm labour tipology /SPEC, GEN1/ B set for discriminting between BIO and INT /B1*B2/; * Parameters * PARAMETERS PP(J,I) RESEZ(J,I) CC(J,I) TERRADZ LANDZ(D,I,J) LABSP1Z(I,J,D) LABSP2Z(I,J,D) LABGN1Z(I,J,D) LAVSPECZ(D) LAVGEN1Z(D)

2 CORPIZ(F) TECZ(I,J) SOZ(I,J) STZ(I,J) OCZ(I) OC1Z(I) RIS(*,*,*,*) RIS2(*,*,*) AVVENT(*,*,*,*,*) CAVVZ(*,*,*) RISRLA(*,*,*) CVZ(*,*,*) PLVZ(*,*,*) ORELSP(Z,I) ORELGN(Z,I) SOLAVV(Z,L) RISRL(Z) CERTZ(J) RLAC(*,*,*); * Tables * $INCLUDE LAVDSP.TXT $INCLUDE LAVDGN.TXT $INCLUDE LGENR3.TXT $INCLUDE LSPEC3.TXT $INCLUDE LSPEC4.TXT $INCLUDE TABELLE4.TXT * Variable Definition * VARIABLES RL gross revenue or objective in italian lira RLA(I,J) farm gross revenue in italian lira X(I,J,F) variables or activities or crops in Ha S(I,J) variable for subsidy bio+int PLV(I,J) total production return in italian lira QNT(I,J) quantity produced CV(I,J) variable costs in italian lira CAVV(I,J) off farm labor cost in italian lira AVV(I,J,D,L) no of hours for off farm workers TRSPEC(D) transfer variable for specialized workers Y binary variable for CONV YY(B) variable for for BIO and INT YC(F) binary variable for farm bodies YCA1(F) binary variable for farm bodies YCA2(F) binary variable for farm bodies YCFU(F) binary variable for farm bodies IY(I) binary variable for no same crop BIO and INT together IYA1(I) IYA2(I) IYFU(I) YB YYIN YYINA1 YYINA2 SS1 SS2

3 SS3 SS4 SS5 SS6 ; POSITIVE VARIABLES X, YY, AVV, TRSPEC, RLA, CAVV; BINARY VARIABLES Y, YC, IY, IYA1, IYA2, IYFU, YCA1, YCA2, YCFU, YB, YYIN, YYINA1, SS1, SS2, SS3, SS4, SS5, SS6; **** * Equations Definition * **** EQUATIONS OBJ objective function RIC(I,J) return PV(I,J) production QUANT(I,J) quantity CVAR(I,J) variable costs BCONV discrimination between CONV and others BBIO discrimination between BIO and others BINTA1 discrimination between INTA1 and others BINTA2 discrimination between INTA2 and others BINTO CONVBIO discrimination among CONV BIO and INT BIOD(I) no same crop bio and int INTDA1(I) no same crop bio and inta1 INTDA2(I) no same crop bio and inta2 INTFULL(I) DBIOINT(I) CBIO(F) no bodies adiacent BIO and INT CINTFU(F) CINTA1(F) no bodies adiacent BIO and INTA1 CINTA2(F) no bodies adiacent BIO and INTA2 CBIONT(F) CLAV(I,J) seasonal workers variable cost LANDAV land costrain CORPIAV(F) land constrain per body LABSPECI(D) specialized labor LABGEN1(D) generical labor ORDPROD(I) SUSSO(I,J) SUCONV SUBIO SUINT SUINTA1 SUINTA2 SUCBI CONVSU BIOSUBIO BIOSUSSO ; OBJ.. RL =E= SUM((I,J), RLA(I,J)); RIC(I,J).. RLA(I,J) =E= PLV(I,J)-CV(I,J)-CAVV(I,J) + S(I,J)*SUSSIDIO(I,J) + SUM(F, X(I,J,F)*SOZ(I,J)) + SUM(F, X(I,J,F)*STZ(I,J));

4 ********BINARY VARIABLE FOR SUBSIDY 2078/92 BIO+INT SUSSO(I,J).. SUM(F, X(I,J,F)) =G= S(I,J); SUCONV.. SUM(I, S(I,"CO")) - TERRADZ*SS1 =L= 0; SUBIO.. SUM((I,F), X(I,"BI",F)) - TERRADZ*SS2 =L= 0; SUINT.. SUM(I, S(I,"IN")) - TERRADZ*SS3 =L= 0; SUINTA1.. SUM(I, S(I,"IA1")) - TERRADZ*SS5 =L= 0; SUINTA2.. SUM(I, S(I,"IA2")) - TERRADZ*SS6 =L= 0; SUCBI.. SS1 + SS2 + SS3 +SS5+SS6 =L= 1; CONVSU.. Y=E=SS1; BIOSUBIO.. SS2 =E= SS4; BIOSUSSO.. SUM(I, S(I,"BI")) - TERRADZ*SS4 =L= 0; ********END VARIABLE FOR SUBSIDY 2078/92 BIO+INT ORDPROD(I).. SUM((J,F), X(I,J,F))*OC1Z(I) =G= OCZ(I); PV(I,J).. PLV(I,J) =E= PP(J,I)*QNT(I,J); QUANT(I,J).. QNT(I,J) =E= SUM((F), X(I,J,F))*RESEZ(J,I); CVAR(I,J).. CV(I,J) =E= CC(J,I)* SUM(F, X(I,J,F)); CLAV(I,J).. LANDAV.. CAVV(I,J) =E= SUM((D,L), AVV(I,J,D,L)*CLAB(L)); TERRADZ =G= SUM((I,J,F), X(I,J,F)); CORPIAV(F).. SUM((I,J), X(I,J,F)) =L= CORPIZ(F); LABSPECI(D).. LAVSPECZ(D) =G= SUM((I,J,F), X(I,J,F)*LABSP1Z(I,J,D))+ SUM((I,J,F), X(I,J,F)*LABSP2Z(I,J,D))- SUM((I,J), AVV(I,J,D,"SPEC"))+ TRSPEC(D); LABGEN1(D).. LAVGEN1Z(D) =G= SUM((I,J,F), X(I,J,F)*LABGN1Z(I,J,D))- SUM((I,J), AVV(I,J,D,"GEN1"))- TRSPEC(D) ; ******BINARY EQUATIONS FOR DISCRIMINATING AMONG PRODUCTION ALTERNATIVES BCONV.. SUM((I,F), X(I,"CO",F)) - TERRADZ*Y =L= 0; BBIO.. SUM((I,F), X(I,"BI",F)) - TERRADZ*YY("B1") =L= 0; BINTA1.. SUM((I,F), X(I,"IA1",F)) - TERRADZ*YYINA1 =L= 0; BINTA2.. SUM((I,F), X(I,"IA2",F)) - TERRADZ*YY("B2") =L= 0; BINTO.. SUM((I,F), X(I,"IN",F)) - TERRADZ*YYIN =L= 0; CONVBIO.. Y + YYIN + YYINA1 + SUM(B, YY(B)) =L= 1; *******END DISCRIMINATION AMONG PRODUCTION ALTERNATIVES ****EQUATIONS FOR EVOIDING SAME CROP BIO AND INT AT THE SAME TIME BIOD(I).. SUM(F, X(I,"BI",F))-TERRADZ*IY(I) =L= 0; INTFULL(I).. SUM(F, X(I,"IN",F))-TERRADZ*IYFU(I) =L=0;

5 INTDA1(I).. SUM(F, X(I,"IA1",F))-TERRADZ*IYA1(I) =L= 0; INTDA2(I).. SUM(F, X(I,"IA2",F))-TERRADZ*IYA2(I) =L= 0; DBIOINT(I).. IY(I)+IYA1(I)+IYA2(I)+IYFU(I)=L=1; ****END EVOIDING SAME CROP BIO AND INT AT THE SAME TIME ******BINARY EQUATIONS FOR NO FARM BODIES ADIACENT BIO AND INT CBIO(F).. SUM((I), X(I,"BI",F)) - CORPIZ(F)*YC(F) =L= 0; CINTFU(F).. SUM((I), X(I,"IN",F)) - CORPIZ(F)*YCFU(F) =L= 0; CINTA1(F).. SUM((I), X(I,"IA1",F)) - CORPIZ(F)*YCA1(F)=L=0; CINTA2(F).. SUM((I), X(I,"IA2",F)) - CORPIZ(F)*YCA2(F)=L=0; CBIONT(F).. YC(F)+YCA1(F)+YCA2(F)+YCFU(F)=L=1; ******END NO FARM BODIES ADIACENT BIO AND INT ************* * Maximization Model Definition * ************* MODEL REDDITO /ALL/; LOOP(Z, PP(J,I)=P(Z,J,I); RESEZ(J,I)=RESE(Z,J,I); CC(J,I)=C(Z,J,I); TERRADZ=TERRAD(Z); LABSP1Z(I,J,D)=LABSPEC1(D,Z,I,J); LABSP2Z(I,J,D)=LABSPEC2(D,Z,I,J); LABGN1Z(I,J,D)=LABGN1(D,Z,I,J); LAVSPECZ(D)=LAVSPEC(Z,D); LAVGEN1Z(D)=LAVGEN1(Z,D); CORPIZ(F)=CORPI(Z,F); SOZ(I,J)=SO(Z,I,J); STZ(I,J)=ST(Z,I,J); OCZ(I)=OC(Z,I); OC1Z(I)=OC1(Z,I); SOLVE REDDITO USING MIP MAXIMIZING RL; RIS(Z,I,J,F)=X.L(I,J,F); RIS2(J,Z,I)=SUM(F, X.L(I,J,F)); RISRL(Z)=RL.L; RISRLA(Z,I,J)=RLA.L(I,J); AVVENT(Z,D,L,I,J)=AVV.L(I,J,D,L); CAVVZ(Z,I,J)=CAVV.L(I,J); CVZ(Z,I,J)=CV.L(I,J); PLVZ(Z,I,J)=PLV.L(I,J); OPTION PLVZ:2:1:2; OPTION CVZ:2:1:2; OPTION RISRLA:2:1:2; OPTION CAVVZ:2:1:2; OPTION RIS:2:2:1; OPTION RIS2:2:1:1;

6 OPTION AVVENT:2:2:3; ); DISPLAY RIS2, RISRL, RISRLA, CVZ, PLVZ, CAVVZ;

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