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

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  • Amer Ait Sidhoum
  • Philipp Mennig
  • Johannes Sauer

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.

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  • Amer Ait Sidhoum & Philipp Mennig & Johannes Sauer, 2023. "Do agri-environment measures help improve environmental and economic efficiency? Evidence from Bavarian dairy farmers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 918-953.
    • Handle: RePEc:oup:erevae:v:50:y:2023:i:3:p:918-953.
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    2. Bernini, Cristina & Galli, Federica, 2024. "Economic and Environmental Efficiency, Subsidies and Spatio-Temporal Effects in Agriculture," Ecological Economics, Elsevier, vol. 218(C).

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