Producer Behaviour and Agri-Environmental Policies: A Directional Distance based Matching Approach
This empirical study investigates the effects of different agri-environmental schemes on individual producer behaviour. We consider the effects on production intensity, performance and structure for a sample of UK cereal farms for the period 2000 to 2009 and use the policy examples of the Environmental Stewardship Scheme (ESS) and the Nitrate Vulnerable Zones (NVZ). The econometric methodology is based on a directional distance function framework as well as the application of propensity score analysis by the use of matching estimators. We find that both schemes are effectively influencing production behaviour at individual farm level. However, agri-environmental schemes show only very minor effects on the technical and allocative efficiency of farms, hence, we can conclude that farms enrolled in agri-environmental schemes are efficiently adjusting their production decisions given the constraints by the respective scheme. Farms affected by these schemes indeed tend to become less specialised and more diversified with respect to their production structure. A voluntary type agrienvironmental scheme seems to signficantly influence producer behaviour at a far higher scale than a non-voluntary agri-environmental scheme. The methodological novelty of this research lies in the use of a sound production theory based multi-output multi-input approach to disentangle measures for production performance and structure which are then used as indicators for the robust treatment effects’ analyses.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(1), pages 79-101, March.
- Adam Ozanne & Ben White, 2008.
"Hidden action, risk aversion and variable fines in agri-environmental schemes ,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 52(2), pages 203-212, 06.
- Ozanne, Adam & White, Benedict, 2008. "Hidden action, risk aversion and variable fines in agri-environmental schemes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), June.
- Guido M. Imbens & Jeffrey M. Wooldridge, 2008.
"Recent Developments in the Econometrics of Program Evaluation,"
NBER Working Papers
14251, National Bureau of Economic Research, Inc.
- Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
- Wooldridge, Jeffrey M. & Imbens, Guido, 2009. "Recent Developments in the Econometrics of Program Evaluation," Scholarly Articles 3043416, Harvard University Department of Economics.
- Imbens, Guido W. & Wooldridge, Jeffrey M., 2008. "Recent Developments in the Econometrics of Program Evaluation," IZA Discussion Papers 3640, Institute for the Study of Labor (IZA).
- Guido Imbens & Jeffrey Wooldridge, 2008. "Recent developments in the econometrics of program evaluation," CeMMAP working papers CWP24/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- James J. Heckman, 2010.
"Building Bridges between Structural and Program Evaluation Approaches to Evaluating Policy,"
Journal of Economic Literature,
American Economic Association, vol. 48(2), pages 356-98, June.
- James J. Heckman, 2010. "Building Bridges Between Structural and Program Evaluation Approaches to Evaluating Policy," NBER Working Papers 16110, National Bureau of Economic Research, Inc.
- Rolf Färe & Shawna Grosskopf, 2000. "Theory and Application of Directional Distance Functions," Journal of Productivity Analysis, Springer, vol. 13(2), pages 93-103, March.
- Shavell, Steven, 1992. "A note on marginal deterrence," International Review of Law and Economics, Elsevier, vol. 12(3), pages 345-355, September.
- Pagiola, Stefano & Ramirez, Elias & Gobbi, Jose & de Haan, Cees & Ibrahim, Muhammad & Murgueitio, Enrique & Ruiz, Juan Pablo, 2007. "Paying for the environmental services of silvopastoral practices in Nicaragua," Ecological Economics, Elsevier, vol. 64(2), pages 374-385, December.
- Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
- Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, 01.
- Stern, David I, 2008.
"Elasticities of Substitution and Complementarity,"
12454, University Library of Munich, Germany.
- Dobbs, Thomas L. & Pretty, Jules, 2008. "Case study of agri-environmental payments: The United Kingdom," Ecological Economics, Elsevier, vol. 65(4), pages 765-775, May.
- Jeffrey M. Peterson & Richard N. Boisvert, 2004. "Incentive-Compatible Pollution Control Policies under Asymmetric Information on Both Risk Preferences and Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 291-306.
- Rolf Färe & Carlos Martins-Filho & Michael Vardanyan, 2010. "On functional form representation of multi-output production technologies," Journal of Productivity Analysis, Springer, vol. 33(2), pages 81-96, April.
- Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Hayley H. Chouinard & Tobias Paterson & Philip R. Wandschneider & Adrienne M. Ohler, 2008. "Will Farmers Trade Profits for Stewardship? Heterogeneous Motivations for Farm Practice Selection," Land Economics, University of Wisconsin Press, vol. 84(1), pages 66-82.
- Stavins, Robert N., 1996. "Correlated Uncertainty and Policy Instrument Choice," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 218-232, March.
- Kirwan, Barrett E., 2008.
"The Incidence of U.S. Agricultural Subsidies on Farmland Rental Rates,"
42714, University of Maryland, Department of Agricultural and Resource Economics.
- Barrett E. Kirwan, 2009. "The Incidence of U.S. Agricultural Subsidies on Farmland Rental Rates," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 138-164, 02.
- Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-88, September.
- Martin Petrick & Patrick Zier, 2011.
"Regional employment impacts of Common Agricultural Policy measures in Eastern Germany: a difference‐in‐differences approach,"
International Association of Agricultural Economists, vol. 42(2), pages 183-193, 03.
- Petrick, Martin & Zier, Patrick, 2010. "Regional employment impacts of Common Agricultural Policy measures in Eastern Germany: A difference-in-differences approach," Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers 93158, Humboldt University Berlin, Department of Agricultural Economics.
- Adam Ozanne & Tim Hogan, 2001. "Moral hazard, risk aversion and compliance monitoring in agri-environmental policy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 329-348, October.
- Yuki Yano & David Blandford, 2009. "Use of Compliance Rewards in Agri-environmental Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 530-545.
- Mosnier, Claire & Ridier, Aude & Kphaliacos, Charilaos & Carpy-Goulard, Françoise, 2009. "Economic and environmental impact of the CAP mid-term review on arable crop farming in South-western France," Ecological Economics, Elsevier, vol. 68(5), pages 1408-1416, March.
- Heyes, Anthony G, 1998. "Making Things Stick: Enforcement and Compliance," Oxford Review of Economic Policy, Oxford University Press, vol. 14(4), pages 50-63, Winter.
- Mark Brady & Konrad Kellermann & Christoph Sahrbacher & Ladislav Jelinek, 2009. "Impacts of Decoupled Agricultural Support on Farm Structure, Biodiversity and Landscape Mosaic: Some EU Results," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 563-585.
- Yasar, Mahmut & Morrison Paul, Catherine J., 2008.
"Foreign Technology Transfer and Productivity: Evidence From a Matched Sample,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 26, pages 105-112, January.
- Mahmut Yasar & Catherine J. Morrison Paul, 2005. "Foreign Technology Transfer and Productivity: Evidence from a Matched Sample," Emory Economics 0514, Department of Economics, Emory University (Atlanta).
- Zabel, Astrid & Roe, Brian, 2009. "Optimal design of pro-conservation incentives," Ecological Economics, Elsevier, vol. 69(1), pages 126-134, November.
- Scott E. Atkinson & Rolf Färe & Daniel Primont, 2003. "Stochastic Estimation of Firm Inefficiency Using Distance Functions," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 596-611, January.
- Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
- Cameron Hepburn, 2006. "Regulation by Prices, Quantities, or Both: A Review of Instrument Choice," Oxford Review of Economic Policy, Oxford University Press, vol. 22(2), pages 226-247, Summer.
- Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:124877. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.