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The effect of environmental cross compliance regulations on Swiss farm productivity

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  • Bokusheva, Raushan
  • Kumbhakar, Subal C.
  • Lehmann, Bernard

Abstract

This paper analyzes the evolution of Swiss farm productivity during the implementation of environmental policy reforms. We employ a production model formulation with technology parameters defined as the functions of subsidies, as well as individual farm characteristics. Our estimates for two groups of farms – milk-producing and crop farms – show that introducing environmental regulations induced serious changes in the production technology and productivity of inputs, especially of land, labor and fertilizer. The overall effect of the subsidies on the production output has been found negative. At the same time, we find that farms do not use their resources optimally, which indicates some deficiencies in structural adjustments, primarily in the land and labor markets.

Suggested Citation

  • Bokusheva, Raushan & Kumbhakar, Subal C. & Lehmann, Bernard, 2010. "The effect of environmental cross compliance regulations on Swiss farm productivity," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91828, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc10:91828
    DOI: 10.22004/ag.econ.91828
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    References listed on IDEAS

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    1. Renan-Ulrich Goetz & Alois Keusch & Joan Ribas-Tur, 2005. "The Efficiency of Direct Payments versus Tax Reductions under Uncertainty," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(I), pages 115-127, March.
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    Keywords

    Environmental Economics and Policy;

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