 Unintended Consequences of Environmental Policies: the Case of Set-aside and Agricultural IntensificationConséquences involontaires des politiques environnementales: le cas du gel des terres et de l'intensification de l'agriculturePost-Print from HAL Abstract: The objective of this paper is to evaluate the indirect impacts of a set-aside policy on the environment through crop intensification. We estimate a structural, multi-output model on a panel of French farmers from 2006 to 2010, accounting for multivariate selection (corner solutions) on crops and land use. We use a parametric and a semi-nonparametric (based on sieve estimation) version of a quasi-maximum likelihood (QML) estimator, compare their goodness of fit and parameter efficiency and check for closeness with a test for non-nested models. We then perform a simulation experiment based on elasticity estimates for set-aside area and input demand, to evaluate intensive margin effects of the set-aside policy. Results show that a set-aside subsidy can provide farmers with incentives to intensify their production, leading to potential adverse environmental effects. Keywords: Fertilizer and pesticide input demand; Semi-nonparametric estimation; Set-aside; Land use; Corner solutions (search for similar items in EconPapers) Published in Environmental Modeling & Assessment, 2022, 27 (2), pp.363-384. ⟨10.1007/s10666-021-09815-0⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03550528 DOI: 10.1007/s10666-021-09815-0 Access Statistics for this paper More papers in Post-Print from HAL |
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