Abstract
Agri-environmental schemes (AESs) constitute one of the main agricultural policy instruments that address environmental objectives in the Common Agricultural Policy. However, in spite of a 20-year application window and large budgetary shares allocated by EU member states, several studies demonstrate lower-than-expected environmental impacts. The reasons for poor environmental outcomes are the lack of targeting, low participation rates, spatial heterogeneity, and information asymmetry between farmers and public administrators. This study comprehensively analyses the determinants of AES adoption while highlighting patterns of the spatial agglomeration of participation in organic and integrated production. For this, we combine the results of farm-level adoption analysis with a spatial analysis of the participation rate. The results show that both micro- and meso-level characteristics strongly impact AES participation. In fact, farm and household structure, quality of extension services, and territorial conditions all significantly affect AES adoption.
Highlights
With the introduction of the MacSharry Reform in 1992, along with accompanying measures, agri-environmental schemes (AESs) have come to constitute the main policy instrument to address environmental objectives within the European Union’s (EU’s) Common Agricultural Policy (CAP)
This section addresses the results of using the multinomial logit model and the spatial regression model. Both models are used to study the determinants of participation in organic and integrated production, but they estimate the determinants of AES participation in different ways
Following [38], we implement a spatial econometrics model instead of a traditional ordinary least squares (OLS) model; this allows for more robust estimation
Summary
AESs offer compensation payments that aim to encourage farmers to adopt agricultural practices or prescriptions that positively affect environmental quality. In the new programming period (2014–2020), AESs—which are called ‘agri-environmental climate schemes’—are compulsory in all EU member states, with a minimum allocation of about 30% of the RDP budget. The AES objectives in the new programming period are: (a) Restoring, preserving, and enhancing biodiversity across the European landscape, including NATURA 2000 (According to the European legislator, the Natura 2000 areas define a network of protected natural areas in the EU) areas and high-value nature farming; (b) improving water management; (c) improving soil management; (d) reducing nitrous oxide and methane emissions from agriculture; and (e) fostering carbon sequestration in agriculture. The authors of [1] identify two criteria by which to support AESs—namely, ‘Does the practice offer clear environmental benefits?’
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