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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
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    Keywords

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    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

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