The impact of environmental policies on adopters under general interference. The case of EU support to organic farming

Edoardo Baldoni and Roberto Esposti

No 497, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: This paper concerns the application of the Treatment Effect logic to the assessment of environmental policy measures. Staggered treatment entry is admitted and, unlike most literature in the field, both dynamic treatment effects (carryover effect or time interference) and spatial interference (contagion or spillovers) are admitted. This circumstance is referred to as general interference. An appropriate theoretical framework is developed to integrate general interference in adopters' decision making. The identification and estimation approach adapts the procedure recently proposed by Wang (2023). This theoretical framework and estimation approach are applied to the adoption of organic farming in Italian agriculture under the EU support during period 2014-2022. Results confirm that disregarding one of these sources of interference may induce misleading evidence resulting in inappropriate policy conclusions.

Keywords: Staggered Treatments; Dynamic Treatment Effects; Spatial Interference; Environmental Policy; Organic Farming. (search for similar items in EconPapers)
JEL-codes: C21 C22 C23 Q12 Q18 (search for similar items in EconPapers)
Pages: 42
Date: 2025-07
New Economics Papers: this item is included in nep-agr, nep-eec and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:497

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