Do agri-environment measures help improve environmental and economic efficiency? Evidence from Bavarian dairy farmers

Amer Ait Sidhoum, Philipp Mennig, Johannes Sauer

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

This study presents an innovative empirical application to the assessment of agri-environment measures on environmental and economic efficiency. Using a multi-equation representation with desirable technology and its accompanying undesirable by-production technology, we investigate the effects of agri-environment measures on farm-level environmental and economic efficiency. A combination of propensity score matching and a difference-in-difference approach is used to estimate the policy effect. The application focuses on a balanced sample of Bavarian dairy farms surveyed between 2013 and 2018. Results suggest that agri-environment schemes do not alter farms' economic efficiency, whereas environmental efficiency does not seem to be stimulated by schemes participation.

Original languageEnglish
Pages (from-to)918-953
Number of pages36
JournalEuropean Review of Agricultural Economics
Volume50
Issue number3
DOIs
StatePublished - 1 Jul 2023

Keywords

  • agri-environment schemes
  • data envelopment analysis
  • environmental performance
  • nitrogen pollution
  • policy evaluation

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