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

• Main Authors: Ioannis Skevas, Xueqin Zhu, Victoria Shestalova, Grigorios Emvalomatis
• Format: Article
• Language: English
• Published: Western Agricultural Economics Association 2018-09-01
• Series: Journal of Agricultural and Resource Economics
• Subjects: hyperbolic efficiency; policy evaluation; subsidies
• Online Access: https://ageconsearch.umn.edu/record/276503

This study examines the impact of policies and intensification on the environmental performance of Dutch dairy farms in the period 2001Ð2010 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.