European Review of Agricultural Economics Advance Access originally published online on April 9, 2009
European Review of Agricultural Economics 2009 36(1):79-101; doi:10.1093/erae/jbp001
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Evaluating the effects of farm programmes: results from propensity score matching
Johann Heinrich von Thünen-Institut, Institute of Rural Studies, Germany
Department of Economics, Vienna University of Economics and Business Administration, Austria
Corresponding author: Christoph R. Weiss, Department of Economics, Vienna University of Economics and Business Administration, Augasse 2-6, 1090 Vienna, Austria. E-mail: cweiss{at}wu-wien.ac.at
Received April 2008; final version received January 2009
The paper applies a semi-parametric propensity score matching approach to evaluate the effects of agri-environment (AE) programmes on input use and farm output of individual farms in Germany. The analysis reveals a positive and significant treatment effect of AE programmes on the area under cultivation, in particular grassland, resulting in a decrease of cattle livestock densities. Furthermore, participation significantly reduced the purchase of farm chemicals (fertiliser, pesticide). We also find differences in the treatment effect among individual farms (heterogeneous treatment effects). Farms that can generate the largest benefit from the programme are most likely to participate.
Keywords: evaluation, farm programmes, propensity score matching
JEL classification: Q12, Q18