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Modelling Farmers' Participation in an Agri-environmental Scheme using Panel Data: An Application to the Rural Environment Protection Scheme in Ireland

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  • Stephen Hynes
  • Eoghan Garvey

Abstract

Previous studies that have attempted to model the participation decision of farmers in agri-environmental schemes have used a static framework where it was not possible to examine changes in the participation decision of farmers over time. This is rectified in this paper by utilising an 11-year panel that contains information on 300 farmers for each year. The structure of this dataset allows us to employ discrete time duration random effects panel data logit models to model the determinants of entering the Irish Rural Environment Protection Scheme (REPS). We introduce a dynamic element into a number of the models by using the random effects logit model estimator, with lagged dependent variables as additional explanatory variables. The results point to the fact that systems of farming that are more extensive and less environmentally degrading remain those most likely to participate in the REPS. In addition, the results highlight the fact that where no attempt is made to control for unobserved heterogeneity or path dependency the effects of the farm- and farmer-specific characteristics may be overestimated. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 3 ()
Pages: 546-562

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Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:546-562

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Cited by:
  1. Signorotti, Claudio & Marconi, Valentina & Raggi, Meri & Viaggi, Davide, 2013. "How Do Agri-Environmental Schemes (AES’s) Contribute to High Nature Value (HNV) Farmland: A Case Study in Emilia Romagna," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149762, Italian Association of Agricultural and Applied Economics (AIEAA).
  2. Vollenweider, Xavier & Di Falco, Salvatore & O'Donoghue, Cathal, 2011. "Risk Preferences and Voluntary Agri-environmental Schemes: Does Risk Aversion Explain the Uptake of the Rural Environment Protection Scheme?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115552, European Association of Agricultural Economists.
  3. Lava Prakash Yadav & Stephen O’Neill & Tom van Rensburg, 2013. "Economic Crisis and the Restructuring of Wage Setting Mechanisms for Vulnerable Workers in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(2), pages 221-245.
  4. Sauer, Johannes & Walsh, John, 2011. "ESS versus NVZ – The Cost-Effectiveness of Command-and-Control versus Agreement Based Policy Instruments," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108963, Agricultural Economics Society.
  5. Buckley, Cathal & Hynes, Stephen & Mechan, Sarah, 2012. "Operating or not Operating at the Margin: Farmers Willingness to Adopt a Riparian Buffer Zone," Working Papers 148830, Socio-Economic Marine Research Unit, National University of Ireland, Galway.

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