Arbeitspapier

Technical efficiency and equity effects of environmental payments in Ireland

We investigate the relationship between farm level competitiveness and environmental performance using Stochastic Frontier Analysis (SFA). We use an Irish panel of farm level financial data for the years 2000-2017 to analyse the link between EU Common Agricultural Policy environmental payments, and dairy and beef production from economic and environmental views. Our estimates identify a positive relationship between technical efficiency and environmental payments in place in recent years, although not for early versions of these payments. We simulate increases in the Green, Low-Carbon, Agri-Environment payments targeted to farms with low stocking rates, financed through reductions in decoupled payments. We find that under this stylised scenario, competitiveness and environmental gains are achieved for dairy farms. However, under this scenario, we do not identify gains for beef farms. We also find a reduction in income inequality under this scenario for both farm types.

Language
Englisch

Bibliographic citation
Series: ESRI Working Paper ; No. 711

Classification
Wirtschaft
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Agricultural Policy; Food Policy
Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
Subject
Stochastic Frontier Analysis
emissions
income inequality
agricultural subsidies
technical efficiency
simulation

Event
Geistige Schöpfung
(who)
Tovar Reaños, Miguel Angel
Martinez Cillero, Maria
Event
Veröffentlichung
(who)
The Economic and Social Research Institute (ESRI)
(where)
Dublin
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Tovar Reaños, Miguel Angel
  • Martinez Cillero, Maria
  • The Economic and Social Research Institute (ESRI)

Time of origin

  • 2021

Other Objects (12)