The effect of mandatory agro-environmental policy on farm environmental performance
AbstractThe EU farmers are subject to mandatory cross compliance measures requiring them to meet environmental conditions to be eligible for public support. These obligations reinforce incentives for the farmers to change their behaviour towards the environment. We apply quasi-experimental methods to measure the causal relationship between cross-compliance and farm environmental performance. We find that cross compliance reduced farm fertiliser and pesticide expenditure. This result also holds for farmers who participated in other voluntary agro-environmental schemes. However, the results do not support our expectations that farmers who relied on larger shares of public payments had a stronger motivation to improve their environmental performance.
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Bibliographic InfoPaper provided by CERE - the Center for Environmental and Resource Economics in its series CERE Working Papers with number 2011:13.
Length: 31 pages
Date of creation: 09 Sep 2011
Date of revision:
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Web page: http://www.cere.se
agriculture; Common Agriculture Policy; cross-compliance; environment; EU; farm;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-09-22 (Agricultural Economics)
- NEP-ALL-2011-09-22 (All new papers)
- NEP-ENV-2011-09-22 (Environmental Economics)
- NEP-EUR-2011-09-22 (Microeconomic European Issues)
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