The Impact of the Common Agricultural Policy on Energy Efficiency in Agriculture: Between Farmer Support and Sustainable Development in the Visegrad Group

Piotr Kułyk () and Waldemar Sługocki
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Piotr Kułyk: Institute of Economics and Finance, University of Zielona Góra, Licealna Street 9, 65-417 Zielona Góra, Poland
Waldemar Sługocki: Institute of Economics and Finance, University of Zielona Góra, Licealna Street 9, 65-417 Zielona Góra, Poland

Energies, 2025, vol. 18, issue 21, 1-19

Abstract: This study examines the relationship between energy efficiency in agricultural production and its determinants, considering technological, economic, political, and social factors. The aim was to determine the impact of the CAP on the energy efficiency of agricultural production, as well as technological, market, and social changes. The impact of time effects was also taken into account. The study focuses on the four Visegrad Group countries over the 2004–2023 period. Both fixed-effects and dynamic panel models were employed to capture structural changes over time. The significance of agriculture, as a result of structural transformations, is relatively small and hovers around 3% in these countries. The CAP was found to have a significant impact on the energy efficiency of agricultural production. However, it was not the amount of support but rather its structure that played a crucial role, particularly environmental support (0.04). The inertia effect was also of fundamental importance (0.41—elasticity in the inertia model). The total value of transfers, especially in the long term, proved to be a discouraging factor for this process. Market conditions, including energy prices (0.456), structural changes in farms (0.016), and labor input (−0.04), were also significant factors. However, it was not so much the size of support but rather the structure of support that was crucial. The total value of transfers, especially in the long term, was a demotivator for this process. Market conditions, including energy prices, structural changes on farms, and labor inputs, were also important factors. A key recommendation for agricultural financial support policy is to focus support more on environmental and low-emission issues, which are linked to improving the energy efficiency of production while maintaining its growth. Transfers related to the growing importance of renewable energy sources and support for rural development, which do not yield beneficial effects in the considered scope, require increased conditionality.

Keywords: energy efficiency; economic conditions; economic transfer; economic policy; CO 2 emission (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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