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Environmental Sustainable Value In Agriculture Revisited: How Investment Subsidies Foster Eco-Efficiency

Author

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  • CZYŻEWSKI, BAZYLI
  • MATUSZCZAK, ANNA
  • GRZELAK, ALEKSANDER
  • GUTH, MARTA
  • MAJCHRZAK, ADAM

Abstract

Many researchers and policy makers argue that CAP should support small farms mainly through environmental subsidies contributing by this mean to sustainable agriculture. This study offers a methodological contribution to the value-based sustainability approach, consisting of a computing indicator of environmental sustainable value (ESV). In this study, the authors have attempted to combine the value-oriented approach with DEA frontier benchmarking. In the next step, the authors test how investment subsidies contribute to ESV using a long-term panel of FADN region-representative farms in 2004-2015 with regards to other policy measures and factor endowments. The seminal within-between specification was employed to the control time variant and time in-variant space heterogeneity of European regions. The articles main finding is that higher investment support is beneficial for ESV. Other payments exert a negative effect on ESV besides the cross-sectional impact of environmental subsidies. When it comes to factor endowment influence, there is a positive impact of the capital-labor ratio and negative impact of the capital-land ratio.

Suggested Citation

  • Czyżewski, Bazyli & Matuszczak, Anna & Grzelak, Aleksander & Guth, Marta & Majchrzak, Adam, 2019. "Environmental Sustainable Value In Agriculture Revisited: How Investment Subsidies Foster Eco-Efficiency," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2019(4).
    • Handle: RePEc:ags:paaero:302818
    DOI: 10.22004/ag.econ.302818
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    Cited by:

    1. Piotr Bórawski & Marek Bartłomiej Bórawski & Andrzej Parzonko & Ludwik Wicki & Tomasz Rokicki & Aleksandra Perkowska & James William Dunn, 2021. "Development of Organic Milk Production in Poland on the Background of the EU," Agriculture, MDPI, vol. 11(4), pages 1-25, April.
    2. Bórawski, Piotr & Parzonko, Andrzej & Dunn, James, 2021. "Organization and Economic Situation of Polish Dairy Farms Keeping FADN Agricultural Accounting and Investing," Monographs: Applied Economics, AgEcon Search, number 317790, July.

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