Environmental subsidies and farm economic and environmental performance

ESRI Research Bulletin Articles provide short summaries of work published by ESRI researchers and overviews of thematic areas covered by ESRI programmes of research. Bulletin Articles are designed to be easily accessible to a wide readership. A reference or references to the full publication is included at the start of each Bulletin article.

December 13, 2022
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The Common Agricultural Policy (CAP) has broadly two main groups of subsidies: Income support and rural development support. Under the new CAP, there is the introduction of schemes that promote environmental protection, animal protection welfare, and climate change adaptation. These schemes will be funded by Member States' budgets devoted to income support. Agricultural subsidies influence both farm income and farm competitiveness. While research on the effects of subsidies on the income of different farmers and the competitiveness of their farms is not new, quantification of environmental performance associated with environmental payments has received limited academic attention. We analyse the relationship between the Green Low-Carbon Agri-Environment Scheme (GLAS) and environmental and competitiveness outcomes. GLAS is the main agri-environment scheme in Ireland that has been designed to promote more sustainable production practices.