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EU agri-environmental programs and the "restaurant table effect"

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  • Thilo Glebe
  • Klaus Salhofer

Abstract

The share of agricultural area enrolled in EU agri-environmental programs varies significantly between EU member states. These national differences are explained, based on a model that reflects both, that these programs internalize externalities and the political economy. We identify six factors that affect the extent to which agri-environmental programs are implemented: environmental benefits, opportunity costs of participation, budgetary pressure, the share of program expenditures financed by the EU, the political weight attributed to farmers at the national, and the political influence of each country at the EU level. In addition, we demonstrate that, if the policy decision-making process is noncooperative at the EU level, countries that contribute less to the EU budget will "ceteris paribus" implement more programs. Using data of four years and feasible generalized least square methods, we are able to confirm our theoretical results including a noncooperative behavior of EU member states. Copyright 2007 International Association of Agricultural Economists.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0862.2007.00267.x
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 37 (2007)
Issue (Month): 2-3 (09)
Pages: 211-218

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Handle: RePEc:bla:agecon:v:37:y:2007:i:2-3:p:211-218
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Cited by:

  1. Pufahl, Andrea & Weiss, Christoph R., 2008. "Evaluating the Effects of Farm Programs: Results from Propensity Score Matching," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44149, European Association of Agricultural Economists.
  2. Bertoni, Danilo & Olper, Alessandro, 2012. "The Political Economy Of Agri-Environmental Measures: An Empirical Assessment At The Eu Regional Level," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6.
  3. Barreiro-Hurlé, Jesús & Espinosa-Goded, Maria & Dupraz, Pierre, 2008. "Does Intensity Of Change Matter? Factors Affecting Adoption In Two Agri-Environmental Schemes," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6458, European Association of Agricultural Economists.
  4. Zimmermann, Andrea & Britz, Wolfgang, 2014. "European Farms’ Participation in Agri-environmental Measures," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183073, European Association of Agricultural Economists.
  5. Bertoni, Danilo & Olper, Alessandro, 2008. "The Political Economy of EU Agri-environmental measures: An empirical Assessment at the Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44435, European Association of Agricultural Economists.
  6. Maria Espinosa-Goded & Pierre Dupraz & Jesùs Barreiro-Hurlé, 2009. "Fixed costs involved in crop pattern changes and agri-environmental schemes," Working Papers SMART - LERECO 09-15, INRA UMR SMART.
  7. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 65, number 65.

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