This paper tests the so called "intensification hypothesis" for EU agriculture based on a panel data over the period 1961-1994. The empirical results indicate the acceptance of this hypothesis for all countries, except Portugal. Nevertheless, on statistical grounds, the intensification hypothesis holds only marginally for Austria, Belgium-Luxembourg, Denmark and Germany. Thus, increased price support in EU agriculture, is likely to lead to output increases, which in turn will result in a higher fertiliser/hectare ratio, i.e., in greater intensification of production and possibly in even more negative environmental impacts.
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Paper provided by Athens University of Economics and Business, Department of International and European Economic Studies in its series Athens University of Economics and Business with number
103.
Length: 20 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:athebu:103
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Find related papers by JEL classification: Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data