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The Impact of Agri-environmental Schemes on Farm Performance in Five E.U. Member States: A DID-Matching Approach

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  • Linda Arata
  • Paolo Sckokai

Abstract

The agri-environmental schemes (AESs) of the European Union employ the highest share of the public budget allocated to rural development programs. Our study applies a difference-indifferences propensity score matching estimator to perform a comparative analysis of the effects of these schemes on farmers’ performance across five E.U. member states. The effects of the AESs adoption largely depend on the share of the agri-environmental payment on farm revenue. If this share is larger than 5%, participation in AESs is effective in promoting greener farming practices in all countries but Spain, where a negative effect on farm income is also shown.

Suggested Citation

  • Linda Arata & Paolo Sckokai, 2016. "The Impact of Agri-environmental Schemes on Farm Performance in Five E.U. Member States: A DID-Matching Approach," Land Economics, University of Wisconsin Press, vol. 92(1), pages 167-186.
    • Handle: RePEc:uwp:landec:v:92:y:2016:i:1:p:167-186
    Note: DOI: 10.3368/le.92.1.167
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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
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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