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NON-MONETARY MOTIVATIONS OF AGROENVIRONMENTAL POLICIES ADOPTION. A CAUSAL FOREST APPROACH

Roberto Esposti

No 459, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: This paper investigates the non-monetary motivations of farmers' adoption of agro-environmental policies. Unlike the monetary (income) motivations, non-monetary drivers can not be directly observed but can be identified from observational data within appropriate quasiexperimental designs. A theoretical justification of farmers' choices is firstly formulated and a consequent natural experiment setting is derived. This latter admits heterogeneous, i.e. Individual, Treatment Effects (ITE) that, in turn, can be interpreted in terms of more targeted and tailored policy expenditure. A Causal Forest (CF) approach is adopted to estimate these ITEs for both the treated and not treated units. The approach is applied to two balanced panel samples of Italian FADN farms observed over the 2008-2018 period. Results show how heterogeneous the farmers' response and the associated non-monetary motivations can be, thus pointing to space for a more efficient policy design.

Keywords: Agro-Environmental Policy; Common Agricultural Policy; Behavioural Motivations; Individual Treatment Effects; Causal Forests. (search for similar items in EconPapers)
JEL-codes: C21 Q15 Q51 (search for similar items in EconPapers)
Pages: 68
Date: 2022-01
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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