Introducing a lexicographic goal programming for environmental conservation program in farm activities A case study in Iran Hooman Mansoori and Mohammad Reza Kohansal Department of Agricultural Economics, Ferdowsi University of Mashhad, Mashhad, Iran, and Mohammd Farid Khadem Ghousi Department of Economics, University of Behesti, Tehran, Iran Abstract Purpose – Prosperity of the agricultural sector is very crucial not only for the national economy but also for the regional development. However, this prosperity has quite often a significant environmental cost in terms of water resources overexploitation or pollution. The main purpose of this paper is to create, apply and evaluate a model that aims at the simultaneous maximization of farmer’s welfare and the minimization of the consequent environmental burden. Design/methodology/approach – Lexicographic goal programming technique is employed. This technique is implemented on a representative farm around Mashhad in Iran to seek for a solution – in terms of area and water allocation under different crops. Findings – Results shows that application of a multi-criteria analysis may lead to a win-win situation. Originality/value – A lexicographic goal programming is used to satisfy both goals of farm activity in a represented area in Iran. Keywords Water, Resources, Iran Paper type Research paper Introduction Agriculture is an economic activity that contributes significantly to the gross national product of a country, securing at the same time the viability of the rural sector and the social coherence. During the last decades, agricultural decision analysis studies have been primarily focused on farmers’ welfare maximization. The reasoning is that the prosperity of the agricultural sector is very crucial not only for the national economy but also for the regional development. However, this prosperity has quite often a significant environmental cost in terms of water resources overexploitation or pollution (Latinopoulos and Mylopoulos, 2005). In fact, it can generate an environmental externality, especially concerning water resources that, in the name of higher crop productivity, are often overexploited or polluted. Most agricultural decision analysis studies are primarily focusing on farmers’ welfare optimization. The current issue and full text archive of this journal is available at www.emeraldinsight.com/1756-137X.htm JEL classification – Q15, Q24, Q25 CAER 1,4 478 China Agricultural Economic Review Vol. 1 No. 4, 2009 pp. 478-484 q Emerald Group Publishing Limited 1756-137X DOI 10.1108/17561370910989284