Assessing The Impact Of Agri-Environmental Management Practices On Farm Productivity When Adoption Is Endogenous
Marita Laukkanen () and
Antti Simola ()
No 261154, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists
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)
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