Assessment of the European Common Agricultural Policy and landscape changes: an example from Slovenia

Marko Ogorevc and Renata Slabe-Erker
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Marko Ogorevc: Institute for Economic Research, Ljubljana, Slovenia

Agricultural Economics, 2018, vol. 64, issue 11, 489-498

Abstract: The objective of this study was to determine whether and to what extent Common Agricultural Policy (CAP) measures actually succeed in preserving the diversity of agricultural landscapes. This paper assesses the effects of agricultural policy on changes in the diversity of agricultural landscapes in Slovenia. Diversity is measured by the Shannon index and the Simpson index, while the impacts were estimated using a spatial lag model. The results show that direct payments decrease landscape diversity by 2 index points per 1 000 EUR/ha, but agri-environmental payments for reducing negative impacts on the environment and those for nature conservation increase agricultural landscape diversity by 2.8 index points and 12.30 index points per 1 000 EUR/ha, respectively. Furthermore, we did not find any statistically significant effects of habitat protection payments on landscape diversity. Since direct payments are almost four times larger on average as agri-environmental payments, they preserve landscape diversity only to a limited extent.

Keywords: agricultural landscape diversity; agricultural payments; Shannon index; Simpson index; spatial lag model (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:64:y:2018:i:11:id:337-2017-agricecon

DOI: 10.17221/337/2017-AGRICECON

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