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Estimating The Impact Of Policies Under Spatial Interference. The Case Of Cap Support To Organic Farming

Author

Listed:
  • Edoardo Baldoni

    (European Commission, Joint Research Centre)

  • Roberto Esposti

    (Department of Economics and Social Sciences, Universita' Politecnica delle Marche (UNIVPM))

Abstract

This paper deals with the identification and estimation of a policy impact taking spatial interference explicitly into account. Most literature on treatment-effect estimation excludes this spatial interference by assumption but in several policies spatial interference is very likely to occur as well-known economic forces make contiguity affect both treatment assignment and effect. The paper develops two alternative spatially explicit estimation approaches to take these economic forces into account. These approaches are applied to the support for the adoption of organic farming within the Common Agricultural Policy. The Italian 2008-2020 Farm Accountancy Data Network (FADN) sample is considered. Results suggest that spatial interference occurs and it is relevant in both treatment assignment and impact. Propensity Score Matching approaches seem more suitable to capture this interference.

Suggested Citation

  • Edoardo Baldoni & Roberto Esposti, 2023. "Estimating The Impact Of Policies Under Spatial Interference. The Case Of Cap Support To Organic Farming," Working Papers 475, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:475
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    References listed on IDEAS

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    More about this item

    Keywords

    Spatial Interference; Treatment effect; Agro-Environmental Policy; Organic Farming.;
    All these keywords.

    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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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