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The Role of Innovation in Farm Economic Sustainability: Generalised Propensity Score Evidence from Irish Dairy Farms

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  • Doris Läpple
  • Fiona Thorne

Abstract

We assess the impact of innovation on Irish dairy farm economic sustainability by focusing on profitability, productivity of land and market orientation. A generalised propensity score method is applied to a representative sample of 342 Irish dairy farms. Our empirical findings reveal that innovation increases economic sustainability, but not in a linear way. More specifically, economic gains depend on the level of innovation. Small efforts to increase innovation can lead to economic gains of over €200 per hectare. The results also reveal that innovative farmers can achieve higher economic gains by further innovation. Overall, our findings support the current focus of the Irish extension system on fostering the uptake of innovative technologies and practices in order to achieve an economically sustainable expansion of the dairy sector.

Suggested Citation

  • Doris Läpple & Fiona Thorne, 2019. "The Role of Innovation in Farm Economic Sustainability: Generalised Propensity Score Evidence from Irish Dairy Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(1), pages 178-197, February.
    • Handle: RePEc:bla:jageco:v:70:y:2019:i:1:p:178-197
    DOI: 10.1111/1477-9552.12282
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    Cited by:

    1. Daniele Curzi & Valentina C. Materia & Cristina Vaquero‐Piñeiro, 2023. "Innovation as a resilience strategy to economic crises for international food and drink firms," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 303-321, March.
    2. Sylvester Ochieng Ogutu & Theda Gödecke & Matin Qaim, 2020. "Agricultural Commercialisation and Nutrition in Smallholder Farm Households," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 534-555, June.
    3. Milada Šťastná & Veronika Peřinková & Pavla Pokorná & Antonín Vaishar, 2019. "New Approach to Sustainability in Rural Areas Comprising Agriculture Practices–Analysis of Demonstration Farms in the Czech Republic," Sustainability, MDPI, vol. 11(10), pages 1-14, May.
    4. Alba Vázquez-López & Manuel Marey-Perez, 2021. "Factors Affecting e-Government Adoption by Dairy Farmers: A Case Study in the North-West of Spain," Future Internet, MDPI, vol. 13(8), pages 1-17, August.
    5. Ali Sher & Saman Mazhar & Azhar Abbas & Muhammad Amjed Iqbal & Xiangmei Li, 2019. "Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan," Sustainability, MDPI, vol. 11(7), pages 1-22, March.
    6. Auci, Sabrina & Pronti, Andrea, 2023. "Irrigation technology adaptation for a sustainable agriculture: A panel endogenous switching analysis on the Italian farmland productivity," Resource and Energy Economics, Elsevier, vol. 74(C).
    7. Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Donatella Vignani, 2021. "Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 597-623, July.
    8. Jing‐Yue Liu & Yue‐Jun Zhang & Charles H. Cho, 2023. "Corporate environmental information disclosure and green innovation: The moderating effect of CEO visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3020-3042, November.
    9. Florina Pinzaru & Alina Mihaela Dima & Alexandra Zbuchea & Zoltan Veres, 2022. "Adopting Sustainability and Digital Transformation in Business in Romania: A Multifaceted Approach in the Context of the Just Transition," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(59), pages 1-28.
    10. Alba Vázquez-López & Martín Barrasa-Rioja & Manuel Marey-Perez, 2021. "ICT in Rural Areas from the Perspective of Dairy Farming: A Systematic Review," Future Internet, MDPI, vol. 13(4), pages 1-18, April.
    11. Liyun Zhu & Alfons Oude Lansink, 2022. "Dynamic sustainable productivity growth of Dutch dairy farming," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-19, February.
    12. Gavard, Claire & Göbel, Jonas & Schoch, Niklas, 2022. "Local economic impacts of wind power deployment in Denmark," ZEW Discussion Papers 22-058, ZEW - Leibniz Centre for European Economic Research.
    13. Mugurel I. Jitea & Valentin C. Mihai & Felix H. Arion & Iulia C. Muresan & Diana E. Dumitras, 2021. "Innovation Gaps and Barriers in Alternative Innovative Solutions for Sustainable High Nature Value Grasslands. Evidence from Romania," Agriculture, MDPI, vol. 11(3), pages 1-18, March.
    14. Kilimani, Nicholas & Buyinza, Faisal & Guloba, Madina, 2022. "Crop commercialization and nutrient intake among farming households in Uganda," Food Policy, Elsevier, vol. 113(C).

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