Evaluation of tobacco cultivation alternatives under the EU common agricultural policy (CAP)

A multicriteria model was formulated in order to study the impacts of different tobacco diversification alternatives on income, employment and environment. It was developed in the context of the research project DIVTOB (Diversification for Tobacco Growing Regions in the Southern European Union), a European FP6 funded project. The model estimates the farmers’ utility function taking in account various conflicting criteria that can explain the farmers’ behaviour (e.g. maximisation of farm income, risk minimisation, labour, etc.). The model is used to simulate alternative scenarios and policies and to take alternative farm plans that achieve different levels of income, labour and environmental impacts.