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Impact of Agri-environmental Schemes on Farm Performances in five EU Member States

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  • Arata, L.
  • Sckokai, P.

Abstract

Agri-environmental schemes (AES) of the European Union are the most important measure in terms of share on the public budget for Rural Development. Although the farmers uptake of AES is expected to strongly impact even farmer’s behavior, in the literature the attempts to investigate this impact are scarce. Our study applies a difference-in-differences propensity score matching estimator in order to perform a comparative analyses of the effects of AE measures on farmer’s practises and economic performances across five EU Member States. Results show differences in the AES effects across country as well as differences across farmers of the same country according to what extent the farm income is dependent on the AE payment. Our analyses suggests that the AE payment in Spain is not enough to compensate the large drop of the per hectare income after participation and the AE uptake does not seem to promote effectively environmental-friendly farm practises. In France and Italy the sustainable practises of farmer participants lead to an income foregone that is not fairly compensated by the AE payments. Only in Germany and UK the AE payments seem to compensate the income loss that results from changes in farmers production choices.

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Bibliographic Info

Paper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series 2013 Second Congress, June 6-7, 2013, Parma, Italy with number 149771.

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Date of creation: Jun 2013
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Handle: RePEc:ags:aiea13:149771

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Web page: http://www.aieaa.org/
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Related research

Keywords: agri-environmental schemes; propensity score matching; difference-in-differences; Agricultural and Food Policy; Community/Rural/Urban Development; C21; Q15; D22;

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  1. Tamini, Lota D., 2011. "A nonparametric analysis of the impact of agri-environmental advisory activities on best management practice adoption: A case study of Québec," Ecological Economics, Elsevier, vol. 70(7), pages 1363-1374, May.
  2. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  3. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
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  5. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April.
  6. Rajeev H. Dehejia & Sadek Wahba, 1998. "Propensity Score Matching Methods for Non-experimental Causal Studies," NBER Working Papers 6829, National Bureau of Economic Research, Inc.
  7. Edi Defrancesco & Paola Gatto & Ford Runge & Samuele Trestini, 2008. "Factors Affecting Farmers' Participation in Agri-environmental Measures: A Northern Italian Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 114-131, 02.
  8. Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
  9. Xiangping Liu & Lori Lynch, 2011. "Do Agricultural Land Preservation Programs Reduce Farmland Loss? Evidence from a Propensity Score Matching Estimator," Land Economics, University of Wisconsin Press, vol. 87(2), pages 183-201.
  10. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(1), pages 79-101, March.
  11. Jūratė Jaraitė & Andrius Kažukauskas, 2012. "The Effect of Mandatory Agro-Environmental Policy on Farm Fertiliser and Pesticide Expenditure," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 656-676, 09.
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