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Farm Structure and the Effects of Agri-Environmental Programs: Results from a Matching Analysis for European Countries

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  • Pufahl, Andrea
  • Weiss, Christoph R.

Abstract

This paper extends previous research (Pufahl and Weiss, 2009) and applies a semi-parametric propensity score matching approach to evaluate the effects of agrienvironment (AE) programs on input use and farm output of individual farms in eight Member States of the European Union. We find substantial differences in treatment effects between countries. The analysis reveals significant effects of AE participation on production (Germany, France) and farm profits (France, Ireland, United Kingdom). AE participation sporadically reduces the intensity of land use as measured by the purchase of farm chemicals (fertilizer, pesticide) and grazing livestock densities. We also find differences in the treatment effect among farms with different farm size (heterogeneous treatment effects).

Suggested Citation

  • Pufahl, Andrea & Weiss, Christoph R., 2009. "Farm Structure and the Effects of Agri-Environmental Programs: Results from a Matching Analysis for European Countries," 111th Seminar, June 26-27, 2009, Canterbury, UK 52997, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa111:52997
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    File URL: http://purl.umn.edu/52997
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    References listed on IDEAS

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    1. Tauer, Loren W. & Mishra, Ashok K., 2006. "Can the small dairy farm remain competitive in US agriculture?," Food Policy, Elsevier, vol. 31(5), pages 458-468, October.
    2. Parikh, A & Edwards, R, 1980. "Structural Analysis and Forecasts of Commodity Imports Using Cross-Section Relationships," Empirical Economics, Springer, vol. 5(2), pages 109-127.
    3. 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 325-332.
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    Keywords

    evaluation; agri-environment programs; propensity score matching; Germany; Italy; Spain; France; Portugal; United Kingdom; The Netherlands; EU-15; Agribusiness; Agricultural and Food Policy;

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