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Impacts of agricultural policies on productivity and sustainability performance in agriculture: A literature review

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  • Gwendolen DeBoe

    (OECD)

Abstract

This report reviews the evidence base on how agricultural policies impact environmental sustainability and productivity of the agriculture sector, including the potentially contradictory signals policies may send. It considers impacts for specific policy types, classified according to the OECD’s Producer Support Estimate (PSE) classification for agricultural support. At the farm level, key pathways for environmental impacts identified in the literature are firstly incentivising a change in agricultural production at the intensive margin, extensive margin or entry-exit margin, and secondly the dynamic impacts of land use choice. Beyond this, policies can also affect agriculture’s environmental performance by stimulating (or stifling) the provision of environmental services. Environmental impacts from agricultural policy depend on several factors. Individual responses to economic incentives created by agricultural policies vary, producing variations in environmental impacts. Variation also occurs due to location-specific physical factors, including landscape characteristics, as well as the cumulative effects of decisions across actors and across time. Finally, impacts may differ across scales.

Suggested Citation

  • Gwendolen DeBoe, 2020. "Impacts of agricultural policies on productivity and sustainability performance in agriculture: A literature review," OECD Food, Agriculture and Fisheries Papers 141, OECD Publishing.
  • Handle: RePEc:oec:agraaa:141-en
    DOI: 10.1787/6bc916e7-en
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    Cited by:

    1. Gomathy Sethuraman & Nurul Amalina Mohd Zain & Sumiani Yusoff & Yin Mei Ng & Niranjan Baisakh & Acga Cheng, 2021. "Revamping Ecosystem Services through Agroecology—The Case of Cereals," Agriculture, MDPI, vol. 11(3), pages 1-14, March.
    2. Nicoleta Mihaela Doran & Roxana Maria Bădîrcea & Marius Dalian Doran, 2022. "Financing the Agri-Environmental Policy: Consequences on the Economic Growth and Environmental Quality in Romania," IJERPH, MDPI, vol. 19(21), pages 1-15, October.
    3. Giulio Fusco, 2021. "Twenty Years of Common Agricultural Policy in Europe: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(19), pages 1-15, September.
    4. Lankoski, Jussi & Lankoski, Leena, 2023. "Environmental sustainability in agriculture: Identification of bottlenecks," Ecological Economics, Elsevier, vol. 204(PA).
    5. Sanzidur Rahman & Asif Reza Anik & Jaba Rani Sarker, 2022. "Climate, Environment and Socio-Economic Drivers of Global Agricultural Productivity Growth," Land, MDPI, vol. 11(4), pages 1-17, April.
    6. Stefano Ciliberti & Luca Palazzoni & Sofia Maria Lilli & Angelo Frascarelli, 2022. "Direct Payments to Provide Environmental Public Goods and Enhance Farm Incomes: Do Allocation Criteria Matter?," Review of Economics and Institutions, Università di Perugia, vol. 13(1-2).

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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