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Impact of Agri-environmental Schemes on Farm Performances in five EU Member States

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  • Arata, Linda
  • Sckokai, P.

Abstract

Agri-environmental schemes (AES) of the European Union are the most important measure in terms of share on the public budget for Rural Development. Although the farmers uptake of AES is expected to strongly impact even farmer’s behavior, in the literature the attempts to investigate this impact are scarce. Our study applies a difference-in-differences propensity score matching estimator in order to perform a comparative analyses of the effects of AE measures on farmer’s practises and economic performances across five EU Member States. Results show differences in the AES effects across country as well as differences across farmers of the same country according to what extent the farm income is dependent on the AE payment. Our analyses suggests that the AE payment in Spain is not enough to compensate the large drop of the per hectare income after participation and the AE uptake does not seem to promote effectively environmental-friendly farm practises. In France and Italy the sustainable practises of farmer participants lead to an income foregone that is not fairly compensated by the AE payments. Only in Germany and UK the AE payments seem to compensate the income loss that results from changes in farmers production choices.

Suggested Citation

  • Arata, Linda & Sckokai, P., 2013. "Impact of Agri-environmental Schemes on Farm Performances in five EU Member States," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149771, Italian Association of Agricultural and Applied Economics (AIEAA).
  • Handle: RePEc:ags:aiea13:149771
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    File URL: http://purl.umn.edu/149771
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    References listed on IDEAS

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    1. 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, pages 79-101.
    2. Tamini, Lota D., 2011. "A nonparametric analysis of the impact of agri-environmental advisory activities on best management practice adoption: A case study of Québec," Ecological Economics, Elsevier, vol. 70(7), pages 1363-1374, May.
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    4. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
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    8. Xiangping Liu & Lori Lynch, 2011. "Do Agricultural Land Preservation Programs Reduce Farmland Loss? Evidence from a Propensity Score Matching Estimator," Land Economics, University of Wisconsin Press, vol. 87(2), pages 183-201.
    9. Jūratė Jaraitė & Andrius Kažukauskas, 2012. "The Effect of Mandatory Agro-Environmental Policy on Farm Fertiliser and Pesticide Expenditure," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 656-676, September.
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    11. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    12. Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
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    Keywords

    agri-environmental schemes; propensity score matching; difference-in-differences; Agricultural and Food Policy; Community/Rural/Urban Development; C21; Q15; D22;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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