The Impact of Agri-environmental Schemes on Farm Performance in Five E.U. Member States: A DID-Matching Approach

The agri-environmental schemes (AESs) of the European Union employ the highest share of the public budget allocated to rural development programs. Our study applies a difference-indifferences propensity score matching estimator to perform a comparative analysis of the effects of these schemes on farmers’ performance across five E.U. member states. The effects of the AESs adoption largely depend on the share of the agri-environmental payment on farm revenue. If this share is larger than 5%, participation in AESs is effective in promoting greener farming practices in all countries but Spain, where a negative effect on farm income is also shown.