Assessing The Impact Of Agri-Environmental Management Practices On Farm Productivity When Adoption Is Endogenous

Aj Bostian, Moriah Bostian, Marita Laukkanen and Antti Simola

No 261154, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: Environmental management practices for mitigating nutrient runo aect the productivity of agricultural land. Finland's agricultural policy oers a number of such practices, and we use Finnish grain farms as a case study of these productivity impacts. Productivity is endogenous with adoption when decisionmakers can choose from a menu of policy options, but few studies actually address this endogeneity. Our identication strategy thus involves a novel approach for correcting endogeneity, combining classic methods from stochastic frontier analysis and selection models. Using registry data from 2007-2013, we nd that the more ecient farms are also more likely to enroll in management practices. Standard estimates without the endogeneity correction understate productivity losses after adoption.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 24
Date: 2017-08-28
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae17:261154

DOI: 10.22004/ag.econ.261154

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