CAP payments and spatial diversity in cereal crops: An analysis of Italian farms

Fabian Capitanio, Elisa Gatto and Emanuele Millemaci

Land Use Policy, 2016, vol. 54, issue C, 574-582

Abstract: Agricultural biodiversity conservation has been recognized as a fundamental resource for the maintenance of ecological and economic functions. In this paper, we test the hypothesis that the Common Agricultural Policy (CAP) has an impact on crop diversity decisions of farm managers. In so doing, we allow the diversity decision to depend on a rich set of economic and agro-ecological variables, such as prices of the most common cereal varieties, and agro-ecological and socio-economic characteristics at farm and regional level. Using a panel dataset over the period 2004–2010, we compare the results obtained from pooled-OLS and dynamic panel GMM estimators. The empirical analysis shows the existence of a positive relationship between CAP payments and diversity. In addition, decoupling subsidies from production seems to have a positive effect on biodiversity.

Keywords: Crop diversity; CAP; Italian farms; Decoupled subsidy (search for similar items in EconPapers)
JEL-codes: Q12 Q18 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264837715301095
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:54:y:2016:i:c:p:574-582

DOI: 10.1016/j.landusepol.2016.03.019

Access Statistics for this article

Land Use Policy is currently edited by Jaap Zevenbergen

More articles in Land Use Policy from Elsevier
Bibliographic data for series maintained by Joice Jiang ().