Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Evaluating the effects of farm programs: Results from propensity score matching
() and Christoph Weiss
Abstract: The paper applies a non-parametric propensity score
matching approach to evaluate the effects of two types of farm programs
(agri-environment (AE) programs and the less favoured area (LFA) scheme) on
input use and farm output of individual farms in Germany. The analysis
reveals a positive and significant treatment effect of the LFA scheme for
farm sales and the area under cultivation. Participants in AE schemes are
found to significantly increase the area under cultivation (in particular
grassland), resulting in a decrease of livestock densities. Furthermore,
participation in AE programs significantly reduced the purchase of farm
chemicals (fertilizer, pesticide). We also find substantial differences in
the treatment effect between individual farms (heterogeneous treatment
effects). Farms which can generate the largest benefit from the program are
most likely to participate.
JEL-Codes: Q12; Q18; C21; (follow links to similar papers)
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