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Modelling Farmers' Participation in an Agri-environmental Scheme using Panel Data: An Application to the Rural Environment Protection Scheme in Ireland

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  • Stephen Hynes
  • Eoghan Garvey

Abstract

Previous studies that have attempted to model the participation decision of farmers in agri-environmental 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 300 farmers for each year. The structure of this dataset allows us to employ discrete time duration random effects panel data logit models to model the determinants of entering the Irish Rural Environment Protection Scheme (REPS). We introduce a dynamic element into a number of the models by using the random effects logit model estimator, with lagged dependent variables as additional explanatory variables. 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 REPS. In addition, the results highlight the fact that where no attempt is made to control for unobserved heterogeneity or path dependency the effects of the farm- and farmer-specific characteristics may be overestimated. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

Suggested Citation

  • Stephen Hynes & Eoghan Garvey, 2009. "Modelling Farmers' Participation in an Agri-environmental Scheme using Panel Data: An Application to the Rural Environment Protection Scheme in Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 546-562.
  • Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:546-562
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Mark Morrison & Eddie Oczkowski & Jenni Greig, 2011. "The primacy of human capital and social capital in influencing landholders’ participation in programmes designed to improve environmental outcomes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 560-578, October.
    3. repec:eee:touman:v:39:y:2013:i:c:p:62-70 is not listed on IDEAS
    4. Murphy, Geraldine & Hynes, Stephen & Murphy, Eithne & O'Donoghue, Cathal & Green, Stuart, 2011. "Assessing the compatibility of farmland biodiversity and habitats to the specifications of agri-environmental schemes using a multinomial logit approach," Ecological Economics, Elsevier, vol. 71(C), pages 111-121.
    5. Lava Prakash Yadav & Stephen O’Neill & Tom van Rensburg, 2013. "Economic Crisis and the Restructuring of Wage Setting Mechanisms for Vulnerable Workers in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(2), pages 221-245.
    6. 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;International Farm Management Association, vol. 3(4), July.
    7. Murphy, Geraldine & O’Donoghue, Cathal & Hynes, Stephen & Murphy, Eithne, 2014. "Modelling the Participation Decision in Agri-Environmental Schemes," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183069, European Association of Agricultural Economists.
    8. Xavier Vollenweider & Salvatore Di Falco & Cathal O�Donoghue, 2011. "Risk preferences and voluntary agrienvironmental schemes: does risk aversion explain the uptake of the Rural Environment Protection Scheme?," GRI Working Papers 48, Grantham Research Institute on Climate Change and the Environment.
    9. Cathal O'Donoghue & Thia Hennessy, 2014. "Chapter 03: The Agri-Food Sector," Chapters from Rural Economic Development in Ireland,in: Rural Economic Development in Ireland, edition 1, chapter 3 Rural Economy and Development Programme,Teagasc.
    10. Signorotti, Claudio & Marconi, Valentina & Raggi, Meri & Viaggi, Davide, 2013. "How Do Agri-Environmental Schemes (AES’s) Contribute to High Nature Value (HNV) Farmland: A Case Study in Emilia Romagna," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149762, Italian Association of Agricultural and Applied Economics (AIEAA).
    11. Santos, Rui & Clemente, Pedro & Brouwer, Roy & Antunes, Paula & Pinto, Rute, 2015. "Landowner preferences for agri-environmental agreements to conserve the montado ecosystem in Portugal," Ecological Economics, Elsevier, vol. 118(C), pages 159-167.
    12. Honggen Zhu & Zhengfei Guan & Xuan Wei, 2016. "Factors Influencing Farmers’ Willingness to Participate in Wetland Restoration: Evidence from China," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-12, December.
    13. Ryan, Mary & O’Donoghue, Cathal & Upton, Vincent, 2014. "Land Use Change From Agriculture To Forestry: A Structural Model Of The Income And Leisure Choices Of Farmers," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182753, European Association of Agricultural Economists.
    14. Sauer, Johannes & Walsh, John, 2011. "ESS versus NVZ – The Cost-Effectiveness of Command-and-Control versus Agreement Based Policy Instruments," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108963, Agricultural Economics Society.
    15. Villanueva, Anastasio J. & Glenk, Klaus & Rodriguez-Entrena, M., 2016. "Serial non-participation and ecosystem services providers’ preferences towards incentive-based schemes," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236348, Agricultural Economics Society.
    16. repec:bla:jageco:v:68:y:2017:i:3:p:801-821 is not listed on IDEAS
    17. Cathal O'Donoghue & Thia Hennessy, 2015. "Policy and Economic Change in the Agri-Food Sector in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 315-337.
    18. Peter Howley & Stephen Hynes & Cathal O'Donoghue, 2012. "Explaining the non-economic behaviour of farm foresters: The effect of productivist and lifestyle motivations," Working Papers 1203, Rural Economy and Development Programme,Teagasc.
    19. Buckley, Cathal & Hynes, Stephen & Mechan, Sarah, 2012. "Operating or not Operating at the Margin: Farmers Willingness to Adopt a Riparian Buffer Zone," Working Papers 148830, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
    20. Läpple, Doris & Rensburg, Tom Van, 2011. "Adoption of organic farming: Are there differences between early and late adoption?," Ecological Economics, Elsevier, vol. 70(7), pages 1406-1414, May.

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