Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265890 
Year of Publication: 
2021
Series/Report no.: 
ESRI Working Paper No. 711
Publisher: 
The Economic and Social Research Institute (ESRI), Dublin
Abstract: 
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.
Subjects: 
Stochastic Frontier Analysis
emissions
income inequality
agricultural subsidies
technical efficiency
simulation
JEL: 
Q12
Q18
Q52
Document Type: 
Working Paper

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