RT Journal Article
SR Electronic
T1 How Differently Do Farms Respond to Agri-environmental Policies? A Probabilistic Machine-Learning Approach
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 060622-0043R1
DO 10.3368/le.100.2.060622-0043R1
A1 Coderoni, Silvia
A1 Esposti, Roberto
A1 Varacca, Alessandro
YR 2023
UL http://le.uwpress.org/content/early/2023/10/09/le.100.2.060622-0043R1.abstract
AB This study evaluates to what extent farmers respond heterogeneously to the agri-environmental policies implemented within the European Common Agricultural Policy (CAP). Our identification and estimation strategy combines a theory-driven research design formalizing all possible sources of heterogeneity with a Bayesian additive regression trees algorithm. Results from a 2015-2018 panel of Italian farms show that the responsiveness to these policies may differ substantially across farms and farm groups. This suggests room for improvement in the implementation of these policies. We also argue that the specific features of the CAP call for a careful implementation of these empirical techniques.