The Impact of Agri-Environmental Policies and Production Intensification on the Environmental Performance of Dutch Dairy Farms

Ioannis Skevas, Xueqin Zhu, Victoria Shestalova, Grigorios Emvalomatis

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    Abstract

    This study examines the impact of policies and intensification on the environmental performance of Dutch dairy farms in the period 2001-2010 using a hyperbolic distance function. The results indicate that the change from the Mineral Accounting System to the combination of the Application Standards Policy with decoupled payments has not significantly changed farms' hyperbolic efficiency. Farms receiving agri-environmental and animal welfare payments are less hyperbolically efficient than those that do not, highlighting greater decreases in desirable outputs than decreases in undesirable outputs. Finally, intensification increases hyperbolic efficiency, suggesting that intensive practices may increase production without harming the environment.

    Original languageEnglish
    Pages (from-to)423-440
    Number of pages18
    JournalJournal of Agricultural and Resource Economics
    Volume43
    Issue number3
    Publication statusPublished - Sep 2018

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    Keywords

    • intensification
    • agri-environmental policies
    • hyperbolic efficiency
    • Dutch dairy farms
    • Hyperbolic efficiency
    • Policy evaluation
    • Subsidies

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