IDEAS home Printed from https://ideas.repec.org/p/anc/wpaper/497.html
   My bibliography  Save this paper

The impact of environmental policies on adopters under general interference. The case of EU 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 concerns the application of the Treatment Effect logic to the assessment of environmental policy measures. Staggered treatment entry is admitted and, unlike most literature in the field, both dynamic treatment effects (carryover effect or time interference) and spatial interference (contagion or spillovers) are admitted. This circumstance is referred to as general interference. An appropriate theoretical framework is developed to integrate general interference in adopters' decision making. The identification and estimation approach adapts the procedure recently proposed by Wang (2023). This theoretical framework and estimation approach are applied to the adoption of organic farming in Italian agriculture under the EU support during period 2014-2022. Results confirm that disregarding one of these sources of interference may induce misleading evidence resulting in inappropriate policy conclusions.

Suggested Citation

  • Edoardo Baldoni & Roberto Esposti, 2025. "The impact of environmental policies on adopters under general interference. The case of EU support to organic farming," Working Papers 497, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:497
    as

    Download full text from publisher

    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/497.pdf
    File Function: First version, 2025
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. L. Liu & M. G. Hudgens & S. Becker-Dreps, 2016. "On inverse probability-weighted estimators in the presence of interference," Biometrika, Biometrika Trust, vol. 103(4), pages 829-842.
    2. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    3. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    4. Martín-García, Jaime & Gómez-Limón, José A. & Arriaza, Manuel, 2024. "Conversion to organic farming: Does it change the economic and environmental performance of fruit farms?," Ecological Economics, Elsevier, vol. 220(C).
    5. Christian Alemán-Pericón & Alexander Ludwig & Christopher Busch & Raül Santaeulà lia-Llopis, 2022. "A Stage-Based Identification of Policy Effects," Working Papers 1369, Barcelona School of Economics.
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. Fabio Bartolini & Daniele Vergamini, 2019. "Understanding the Spatial Agglomeration of Participation in Agri-Environmental Schemes: The Case of the Tuscany Region," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    8. Laura Forastiere & Edoardo M. Airoldi & Fabrizia Mealli, 2021. "Identification and Estimation of Treatment and Interference Effects in Observational Studies on Networks," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(534), pages 901-918, April.
    9. Guido W. Imbens, 2015. "Matching Methods in Practice: Three Examples," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 373-419.
    10. Han, Sukjin, 2021. "Identification in nonparametric models for dynamic treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 132-147.
    11. Bonfiglio, Andrea & Abitabile, Carla & Henke, Roberto, . "A choice model-based analysis of diversification in organic and conventional farms," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2).
    12. Marynia Kolak & Luc Anselin, 2020. "A Spatial Perspective on the Econometrics of Program Evaluation," International Regional Science Review, , vol. 43(1-2), pages 128-153, January.
    13. Heckman, James J. & Humphries, John Eric & Veramendi, Gregory, 2016. "Dynamic treatment effects," Journal of Econometrics, Elsevier, vol. 191(2), pages 276-292.
    14. Kosuke Imai & Zhichao Jiang, 2020. "Identification and sensitivity analysis of contagion effects in randomized placebo‐controlled trials," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 183(4), pages 1637-1657, October.
    15. Alan C. Acock, 2013. "Discovering Structural Equation Modeling Using Stata," Stata Press books, StataCorp LLC, number dsemus, July.
    16. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
    17. Stefano Carattini & Robert Dur & John List, 2024. "Policy evaluation and the causal analysis of public support," Natural Field Experiments 00798, The Field Experiments Website.
    18. Badi H. Baltagi, 2023. "The Mundlak spatial estimator," Journal of Spatial Econometrics, Springer, vol. 4(1), pages 1-8, December.
    19. Mónica M. Jaime & Jessica Coria & Xiangping Liu, 2016. "Interactions between CAP Agricultural and Agri-Environmental Subsidies and Their Effects on the Uptake of Organic Farming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1114-1145.
    20. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    21. Alemán, Christian & Busch, Christopher & Ludwig, Alexander & Santaeulàlia-Llopis, Raül, 2023. "Stage-based identification of policy effects," ICIR Working Paper Series 52/23, Goethe University Frankfurt, International Center for Insurance Regulation (ICIR).
    22. Silvia Coderoni & Roberto Esposti & Alessandro Varacca, 2024. "How Differently Do Farms Respond to Agri-environmental Policies? A Probabilistic Machine-Learning Approach," Land Economics, University of Wisconsin Press, vol. 100(2), pages 370-397.
    23. Adnan Khan & Xiaoyu Qu & Zhendong Gong, 2025. "Decision mechanism of farmers’ low-carbon agricultural technology adoption: an evolutionary game theory approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 52(2), pages 297-331, May.
    24. Paul J. Gertler & Sebastian Martinez & Patrick Premand & Laura B. Rawlings & Christel M. J. Vermeersch, 2016. "Impact Evaluation in Practice, Second Edition," World Bank Publications - Books, The World Bank Group, number 25030.
    25. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    26. Martinetti, Davide & Geniaux, Ghislain, 2017. "Approximate likelihood estimation of spatial probit models," Regional Science and Urban Economics, Elsevier, vol. 64(C), pages 30-45.
    27. Aleman, Christian & Busch, Christopher & Ludwig, Alexander & Santaeulà lia-Llopis, Raül, 2023. "Stage Based Identification of Policy Effects," CEPR Discussion Papers 18681, C.E.P.R. Discussion Papers.
    28. Edoardo Baldoni & Roberto Esposti, 2021. "Agricultural Productivity in Space: an Econometric Assessment Based on Farm‐Level Data," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1525-1544, August.
    29. Vergamini, Daniele & Viaggi, Davide & Raggi, Meri, 2020. "Evaluating the Potential Contribution of Multi-Attribute Auctions to Achieve Agri-Environmental Targets and Efficient Payment Design," Ecological Economics, Elsevier, vol. 176(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Daiyue & Jin, Yanhong & Cheng, Mingwang, 2024. "Unleashing the power of industrial robotics on firm productivity: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 500-520.
    2. 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.
    3. Roberto Esposti, 2022. "The Coevolution of Policy Support and Farmers' Behaviour. An investigation on Italian agriculture over the 2008-2019 period," Working Papers 464, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    4. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    5. Stefan Bauernschuster & Michael Grimm & Cathy M. Hajo, 2023. "The Impact of Margaret Sanger’s Birth Control Clinics on Early 20th Century U.S. Fertility and Mortality," CESifo Working Paper Series 10421, CESifo.
    6. Bradford, Ashley C. & Fu, Wei & You, Shijun, 2024. "The devastating dance between opioid and housing crises: Evidence from OxyContin reformulation," Journal of Health Economics, Elsevier, vol. 98(C).
    7. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    8. Jaraitė, Jūratė & Kurtyka, Oliwia & Ollivier, Hélène, 2022. "Take a ride on the (not so) green side: How do CDM projects affect Indian manufacturing firms’ environmental performance?," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    9. Cordonnier, Victor & Covarrubias, Katia Alejandra & de la O Campos, Ana Paula, 2024. "The impacts of widespread agricultural interventions on yields and food security in Ethiopia☆," Food Policy, Elsevier, vol. 124(C).
    10. Costa-Font, Joan & Jiménez-Martín, Sergi & Vilaplana-Prieto, Cristina, 2022. "Do Public Caregiving Subsidies and Supports affect the Provision of Care and Transfers?," Journal of Health Economics, Elsevier, vol. 84(C).
    11. Hao, Shiming, 2021. "True structure change, spurious treatment effect? A novel approach to disentangle treatment effects from structure changes," MPRA Paper 108679, University Library of Munich, Germany.
    12. Bhattacharjee, Arnab & Aravena, Claudia & Castillo, Natalia & Ehrlich, Marco & Taou, Nadia & Wagner, Thomas, 2022. "Agroforestry Programs in the Colombian Amazon: Selection, Treatment and Exposure Effects on Deforestation," National Institute of Economic and Social Research (NIESR) Discussion Papers 537, National Institute of Economic and Social Research.
    13. Rösner, Anja & Haucap, Justus & Heimeshoff, Ulrich, 2020. "The impact of consumer protection in the digital age: Evidence from the European Union," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    14. Costi, Chiara & Hollingsworth, Bruce & O'Sullivan, Vincent & Zucchelli, Eugenio, 2023. "Does caring for others affect our mental health? Evidence from the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 321(C).
    15. Athey, Susan & Imbens, Guido W., 2022. "Design-based analysis in Difference-In-Differences settings with staggered adoption," Journal of Econometrics, Elsevier, vol. 226(1), pages 62-79.
    16. Sophie Hatte & Jordan Loper & Thomas Taylor, 2023. "Connecting the Unconnected: Facebook Access and Female Political Representation in Sub-Saharan Africa," Post-Print hal-04310234, HAL.
    17. Bruno Ferman, 2023. "Inference in difference‐in‐differences: How much should we trust in independent clusters?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(3), pages 358-369, April.
    18. Pengju Zhang, 2023. "The fiscal and economic impacts of municipal dissolution: evidence from New York," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 948-1001, August.
    19. Giulia Bettin & Isabella Giorgetti & Stefano Staffolani, 2024. "The impact of Covid-19 lockdown on the gender gap in the Italian labour market," Review of Economics of the Household, Springer, vol. 22(1), pages 1-33, March.
    20. Huber, Martin, 2019. "An introduction to flexible methods for policy evaluation," FSES Working Papers 504, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maurizio Mariotti (email available below). General contact details of provider: https://edirc.repec.org/data/deancit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.