Files
Abstract
To explain over- and underuse of available quota, Buysse et al. (2007) have integrated the shadow
cost of the quota constraint in a quota flexibility function in a positive mathematical programming
model. This method and central hypothesis, formulated and tested for the case of Belgian sugar beet
farms, is in current paper extended and confirmed for the cases of Flemish dairy quota and manure
emission rights. Despite the different organisation, objectives and implementations of the diverse
quota systems, the results are similar. A higher utilisation of quota is significantly driven by the quota
rent, but farm characteristics are also important and the effect declines with increasing quota rent.
Regardless the quota, the dairy quota flexibility behaviour of the sample of Flemish farms results in an
output price elasticity of 0.6%. The quota flexibility functions can be used for policy analysis, model
sophistication and farm advisory instrument.