Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union

Yann Desjeux, Laure Latruffe, K.H. Dakpo and G. Justinia Hanitravelo

No 277364, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: With a sample of farms in the European Union (EU) and Farm Accountancy Data Network (FADN) data completed by additional data, we illustrate how the effect of farm subsidies on technical efficiency changes when environmental (good or bad) outputs are incorporated in the calculation of technical efficiency. Results indicate that the effect of the Common Agricultural Policy (CAP) operational subsidies on farm technical efficiency changes when environmental outputs (in this study: greenhouse gas emissions, nitrogen balance and ecological focus areas) are taken into account in the efficiency calculation: some effects change significance, and more importantly, some effects change sign. Acknowledgement : Financial support from the FP7 EU project FLINT ( Farm level indicators for new topics in policy evaluation ; grant agreement no: 613800) is acknowledged.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
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Working Paper: Effect Of Subsidies On Technical Efficiency Excluding Or Including Environmental Outputs: An Illustration With A Sample Of Farms In The European Union (2017)
Working Paper: Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union (2017)
Working Paper: Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277364

DOI: 10.22004/ag.econ.277364

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