Evaluating Greening Farm Policies: A Structural Model for Assessing Agri-environmental Subsidies

This study uses a structural econometric model to evaluate the impacts of support from a European Union agri-environmental program designed to reduce nutrient pollution from agricultural land. Drawing on a representative sample of individual grain farms, we first quantify the effects of agrienvironm...

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Bibliographic Details
Published in:Land economics 2014-08, Vol.90 (3), p.458-481
Main Authors: Laukkanen, Marita, Nauges, Céline
Format: Article
Language:English
Subjects:
Agricultural industry
Agricultural land
Agricultural pollution
Agricultural subsidies
Agriculture
Allocations
Common agricultural policy
Eastern Europe
Econometrics
Economic theory
Economics
Environment
Environmental impact
European Union
Farm economics
Farmlands
Farms
Fertilizers
Fertilizing
Grain
Grains
Humanities and Social Sciences
Land
Land diversion
Nutrients
Payment
Phosphorus
Pollution
Pollution abatement
Pollution control
Pollution load
Production
Production functions
Studies
Subsidies
Valuation
Western Europe
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Summary:This study uses a structural econometric model to evaluate the impacts of support from a European Union agri-environmental program designed to reduce nutrient pollution from agricultural land. Drawing on a representative sample of individual grain farms, we first quantify the effects of agrienvironmental payments on farms' decisions on land allocation and on fertilizer use. We then combine the predicted land allocation and fertilizer use with environmental production functions to quantify the impact on nutrient loading. Finally, we assess the monetary value of reduced nutrient pollution, drawing on a recent valuation study.
ISSN:0023-7639
1543-8325
DOI:10.3368/le.90.3.458