Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
Agri-environment-climate measures and organic farming support have been the main contractual instruments promoting environment-friendly agricultural practices in the European Union since the early 90s. They are insufficient in reaching significant environmental improvements, in particular because u...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Firenze University Press
2024-01-01
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| Series: | Bio-based and Applied Economics |
| Subjects: | |
| Online Access: | https://oaj.fupress.net/index.php/bae/article/view/14414 |
| Summary: | Agri-environment-climate measures and organic farming support have been the main contractual instruments promoting environment-friendly agricultural practices in the European Union since the early 90s. They are insufficient in reaching significant environmental improvements, in particular because under-funded in comparison with income support instruments. Using French panel data from the farm accountancy data network, we evaluate the impact of a budget transfer from income support to environmental incentives on contract uptake. We estimate the probability of adoption and the acceptable payment triggering this adoption with a generalised Tobit model, and use the estimations to simulate a transfer from direct payments to organic farming support and agri-environment-climate measures budget. Results suggest this mechanism increases adoption. We evaluate several budget allocation scenarios, provide ex-ante elements on farmers’ response to more targeted support towards the delivery of environmental public goods, and how it could help reaching the target of 25% of organic area by 2030.
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| ISSN: | 2280-6180 2280-6172 |