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Testing the Intensification Hypothesis for EU Agriculture

Author

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  • Caraveli, H.

Abstract

This paper tests the so called "intensification hypothesis" for EU agriculture based on a panel data over the period 1961-1994. The empirical results indicate the acceptance of this hypothesis for all countries, except Portugal. Nevertheless, on statistical grounds, the intensification hypothesis holds only marginally for Austria, Belgium-Luxembourg, Denmark and Germany. Thus, increased price support in EU agriculture, is likely to lead to output increases, which in turn will result in a higher fertiliser/hectare ratio, i.e., in greater intensification of production and possibly in even more negative environmental impacts.

Suggested Citation

  • Caraveli, H., 1999. "Testing the Intensification Hypothesis for EU Agriculture," Athens University of Economics and Business 103, Athens University of Economics and Business, Department of International and European Economic Studies.
  • Handle: RePEc:fth:athebu:103
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    More about this item

    Keywords

    TESTING ; AGRICULTURE ; REGRESSION ANALYSIS;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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