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Testing the Intensification Hypothesis for EU Agriculture

H. Caraveli

DEOS Working Papers from Athens University of Economics and Business

Abstract: This paper tests the so called "intensification hypothesis" for EU agriculture based on a panel data over the period 1961-1994. The empirical results indicate the acceptance of this hypothesis for all countries, except Portugal. Nevertheless, on statistical grounds, the intensification hypothesis holds only marginally for Austria, Belgium-Luxembourg, Denmark and Germany. Thus, increased price support in EU agriculture, is likely to lead to output increases, which in turn will result in a higher fertiliser/hectare ratio, i.e., in greater intensification of production and possibly in even more negative environmental impacts.

Keywords: TESTING; AGRICULTURE; REGRESSION ANALYSIS (search for similar items in EconPapers)
JEL-codes: Q1 C23 C33 (search for similar items in EconPapers)
Date: 1999
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