A Panel Data Random Effects Model of Agri-Environment Programme Participation

Stephen Hynes, Brian Cahill, Emma Dillon, Thia Hennessy and Eoghan Garvey
Additional contact information
Emma Dillon: Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland
Thia Hennessy: Department of Agricultural Economics, Rural Economy Development Programme, Teagasc
Eoghan Garvey: Department of Economics, National University of Ireland, Galway, Ireland

No 708, Working Papers from Rural Economy and Development Programme,Teagasc

Abstract: Previous studies that have attempted to model the participation decision of farmers in agrienvironmental schemes have used a static framework where it was not possible to examine changes in the participation decision of farmers over time. This is rectified in this paper by utilising an 11 year panel that contains information on approximately 1,100 farmers for each year. The structure of this data set allows us to employ pooled, fixed and random effects panel data logit models that take into account changes in the participation decision of farmers over time rather than simply examining the participation decision at just one point in time. The results point to the fact that systems of farming that are more extensive and less environmentally degrading remain those most likely to participate in the Rural Environmental Protection Scheme (REPS) leading us to question the efficacy of the scheme.

Keywords: Rural Environmental Protection Scheme; farmer participation; random effects logit model; panel data. (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007
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Citations: View citations in EconPapers (3)

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