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Assessing The Impact Of Agri-Environmental Management Practices On Farm Productivity When Adoption Is Endogenous

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  • Bostian, AJ
  • Bostian, Moriah
  • Laukkanen, Marita
  • Simola, Antti Mikko

Abstract

Environmental management practices for mitigating nutrient runo aect the productivity of agricultural land. Finland's agricultural policy oers a number of such practices, and we use Finnish grain farms as a case study of these productivity impacts. Productivity is endogenous with adoption when decisionmakers can choose from a menu of policy options, but few studies actually address this endogeneity. Our identication strategy thus involves a novel approach for correcting endogeneity, combining classic methods from stochastic frontier analysis and selection models. Using registry data from 2007-2013, we nd that the more ecient farms are also more likely to enroll in management practices. Standard estimates without the endogeneity correction understate productivity losses after adoption.

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  • Bostian, AJ & Bostian, Moriah & Laukkanen, Marita & Simola, Antti Mikko, 2017. "Assessing The Impact Of Agri-Environmental Management Practices On Farm Productivity When Adoption Is Endogenous," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261154, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae17:261154
    DOI: 10.22004/ag.econ.261154
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    References listed on IDEAS

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    Environmental Economics and Policy;

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