Evaluating the Effects of Farm Programmes: Results from Propensity Score Matching
affiliation not provided to SSRN
Vienna University of Economics and Business - Department of Economics
European Review of Agricultural Economics, Vol. 36, No. 1, pp. 79-101, 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
Date posted: April 28, 2009