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How Differently Do Farms Respond to Agri-environmental Policies? A Probabilistic Machine-Learning Approach

Author

Listed:
  • Silvia Coderoni
  • Roberto Esposti
  • Alessandro Varacca

Abstract

This study evaluates the extent to which farmers respond heterogeneously to the agri-environmental policies implemented in the European Common Agricultural Policy (CAP). Our identification and estimation strategy combines a theory-driven research design formalizing all possible sources of heterogeneity with a Bayesian additive regression trees algorithm. Results from a 2015–2018 panel of Italian farms show that the responsiveness to these policies may differ substantially across farms and farm groups. This suggests room for improvement in implementing these policies. We also argue that the specific features of the CAP call for a careful implementation of these empirical techniques.

Suggested Citation

  • Silvia Coderoni & Roberto Esposti & Alessandro Varacca, 2024. "How Differently Do Farms Respond to Agri-environmental Policies? A Probabilistic Machine-Learning Approach," Land Economics, University of Wisconsin Press, vol. 100(2), pages 370-397.
    • Handle: RePEc:uwp:landec:v:100:y:2024:i:2:p:370-397
    Note: DOI: https://doi.org/10.3368/le.100.2.060622-0043R1
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    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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