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...

Full description

Bibliographic Details
Main Authors: Fanny Le Gloux, Pierre Dupraz
Format: Article
Language:English
Published: Firenze University Press 2024-01-01
Series:Bio-based and Applied Economics
Subjects:
Online Access:https://oaj.fupress.net/index.php/bae/article/view/14414
_version_ 1797356567896522752
author Fanny Le Gloux
Pierre Dupraz
author_facet Fanny Le Gloux
Pierre Dupraz
author_sort Fanny Le Gloux
collection DOAJ
description 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.
first_indexed 2024-03-08T14:29:34Z
format Article
id doaj.art-e429aef456864ac0a1d4e8d00033f666
institution Directory Open Access Journal
issn 2280-6180
2280-6172
language English
last_indexed 2024-03-08T14:29:34Z
publishDate 2024-01-01
publisher Firenze University Press
record_format Article
series Bio-based and Applied Economics
spelling doaj.art-e429aef456864ac0a1d4e8d00033f6662024-01-12T14:32:50ZengFirenze University PressBio-based and Applied Economics2280-61802280-61722024-01-0110.36253/bae-14414Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data NetworkFanny Le Gloux0Pierre Dupraz1SMART, INRAE, L'Institut Agro Rennes-AngersSMART, INRAE, L'Institut Agro Rennes-Angers 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. https://oaj.fupress.net/index.php/bae/article/view/14414common agricultural policyTobit modelagri-environment-climate measuresorganic farming support
spellingShingle Fanny Le Gloux
Pierre Dupraz
Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
Bio-based and Applied Economics
common agricultural policy
Tobit model
agri-environment-climate measures
organic farming support
title Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
title_full Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
title_fullStr Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
title_full_unstemmed Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
title_short Upscaling environmental incentives in the Common Agricultural Policy: an ex-ante evaluation method applied with the Farm Accountancy Data Network
title_sort upscaling environmental incentives in the common agricultural policy an ex ante evaluation method applied with the farm accountancy data network
topic common agricultural policy
Tobit model
agri-environment-climate measures
organic farming support
url https://oaj.fupress.net/index.php/bae/article/view/14414
work_keys_str_mv AT fannylegloux upscalingenvironmentalincentivesinthecommonagriculturalpolicyanexanteevaluationmethodappliedwiththefarmaccountancydatanetwork
AT pierredupraz upscalingenvironmentalincentivesinthecommonagriculturalpolicyanexanteevaluationmethodappliedwiththefarmaccountancydatanetwork