Assessing The Impact Of Agri-Environmental Management Practices On Farm Productivity When Adoption Is Endogenous

Environmental management practices for mitigating nutrient runo aect the productivity of agricultural land. Finland's agricultural policy oers a number of such practices, and we use Finnish grain farms as a case study of these productivity impacts. Productivity is endogenous with adoption when decisionmakers can choose from a menu of policy options, but few studies actually address this endogeneity. Our identication strategy thus involves a novel approach for correcting endogeneity, combining classic methods from stochastic frontier analysis and selection models. Using registry data from 2007-2013, we nd that the more ecient farms are also more likely to enroll in management practices. Standard estimates without the endogeneity correction understate productivity losses after adoption.


Issue Date:
Aug 28 2017
Publication Type:
Conference Paper/ Presentation
Language:
English
Total Pages:
24




 Record created 2017-08-02, last modified 2017-08-29

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