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The Role of Innovation in Farm Economic Sustainability: Generalised Propensity Score Evidence from Irish Dairy Farms

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  • Doris Läpple
  • Fiona Thorne

Abstract

We assess the impact of innovation on Irish dairy farm economic sustainability by focusing on profitability, productivity of land and market orientation. A generalised propensity score method is applied to a representative sample of 342 Irish dairy farms. Our empirical findings reveal that innovation increases economic sustainability, but not in a linear way. More specifically, economic gains depend on the level of innovation. Small efforts to increase innovation can lead to economic gains of over €200 per hectare. The results also reveal that innovative farmers can achieve higher economic gains by further innovation. Overall, our findings support the current focus of the Irish extension system on fostering the uptake of innovative technologies and practices in order to achieve an economically sustainable expansion of the dairy sector.

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  • Doris Läpple & Fiona Thorne, 2019. "The Role of Innovation in Farm Economic Sustainability: Generalised Propensity Score Evidence from Irish Dairy Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(1), pages 178-197, February.
    • Handle: RePEc:bla:jageco:v:70:y:2019:i:1:p:178-197
    DOI: 10.1111/1477-9552.12282
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    15. Liyun Zhu & Alfons Oude Lansink, 2022. "Dynamic sustainable productivity growth of Dutch dairy farming," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-19, February.
    16. Gavard, Claire & Göbel, Jonas & Schoch, Niklas, 2022. "Local economic impacts of wind power deployment in Denmark," ZEW Discussion Papers 22-058, ZEW - Leibniz Centre for European Economic Research.
    17. Mugurel I. Jitea & Valentin C. Mihai & Felix H. Arion & Iulia C. Muresan & Diana E. Dumitras, 2021. "Innovation Gaps and Barriers in Alternative Innovative Solutions for Sustainable High Nature Value Grasslands. Evidence from Romania," Agriculture, MDPI, vol. 11(3), pages 1-18, March.
    18. Kilimani, Nicholas & Buyinza, Faisal & Guloba, Madina, 2022. "Crop commercialization and nutrient intake among farming households in Uganda," Food Policy, Elsevier, vol. 113(C).
    19. Iordanis Parikoglou & Grigorios Emvalomatis & Doris Läpple & Fiona Thorne & Michael Wallace, 2024. "The contribution of innovation to farm-level productivity," Journal of Productivity Analysis, Springer, vol. 62(2), pages 239-255, October.
    20. Canessa, Carolin & Ait-Sidhoum, Amer & Wunder, Sven & Sauer, Johannes, 2024. "What matters most in determining European farmers’ participation in agri-environmental measures? A systematic review of the quantitative literature," Land Use Policy, Elsevier, vol. 140(C).

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