Does participation in agri-environmental schemes increase eco-efficiency? Here is the answer.

Papers - 19/10/2023

Research on the effectiveness of Agri-Environmental Schemes predominantly examines their environmental impact, with limited attention to economic aspects. Here is a different approach.

Does participation in agri-environmental schemes increase eco-efficiency? Here is the answer.

Few studies simultaneously explore both ecological and economic outcomes: this paper introduces the concept of eco-efficiency to integrate these factors, aiming to assess the influence of Hungarian field crop farmers’ participation in agri-environmental schemes.

To ensure fair and consistent comparisons, advancements in aggregation and bootstrap theory were employed, all within the context of Data Envelopment Analysis (DEA). Findings suggest a significant potential for improving eco-efficiency in Hungarian crop farms.

Additionally, the study reveals no substantial differences in eco-efficiency, defined as the relationship between farm income and pesticide, fertilizer, and energy use, between participating and non-participating farmers. These results, consistent across various methods, raise concerns about the efficacy of the Agri-Environmental Scheme.

Read and download the paper here.