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A Panel Data Random Effects Model of Agri-Environment Programme Participation

Author

Listed:
  • Stephen Hynes

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • Brian Cahill
  • Emma J. Dillon

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • Thia Hennessy

    (Department of Agricultural Economics, Rural Economy Development Programme, Teagasc)

  • Eoghan Garvey

    (Department of Economics, National University of Ireland, Galway, Ireland)

Abstract

Previous studies that have attempted to model the participation decision of farmers in agrienvironmental 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 approximately 1,100 farmers for each year. The structure of this data set allows us to employ pooled, fixed and random effects panel data logit models that take into account changes in the participation decision of farmers over time rather than simply examining the participation decision at just one point in time. 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 Rural Environmental Protection Scheme (REPS) leading us to question the efficacy of the scheme.

Suggested Citation

  • Stephen Hynes & Brian Cahill & Emma J. Dillon & Thia Hennessy & Eoghan Garvey, 2007. "A Panel Data Random Effects Model of Agri-Environment Programme Participation," Working Papers 0708, Rural Economy and Development Programme,Teagasc.
    • Handle: RePEc:tea:wpaper:0708
    as

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    References listed on IDEAS

    as
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    2. G. A. A. Wossink, 2003. "Biodiversity conservation by farmers: analysis of actual and contingent participation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 461-485, December.
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    7. Begona Alvarez-Farizo, 1999. "Estimating the Benefits of Agri-environmental Policy: Econometric Issues in Open-ended Contingent Valuation Studies," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 42(1), pages 23-43.
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    Cited by:

    1. Jackie Whelan & John Fry & Stuart Green, 2010. "Consideration of landscape in the framework documentation during the evolution of the Rural Environment Protection Scheme (REPS) in the Republic of Ireland," Working Papers 1008, Rural Economy and Development Programme,Teagasc.
    2. Jackie Whelan & John Fry, 2011. "Thelackof Sea To Support Agri-Environmental Objectives In Ireland'S Rural Environment Protection Scheme," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 101-127.
    3. Kilcline, Kevin & O'Donoghue, Cathal & Hennessy, Thia & Hynes, Stephen, 2014. "Economic factors affecting concentrate usage on Irish sheep farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(4), pages 1-10.

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