What is it about?

This analysis explores the relationship between the degree of ecologisation and Total Factor Productivity (TFP) in agriculture. Using advanced statistical methods, the study finds a generally decreasing relationship: a one-step increase in ecologisation results in an average 12% decrease in TFP. However, the relationship is non-linear, with distinct regions. High ecologisation initially boosts TFP but at a decreasing rate, moderate ecologisation sees TFP growth but less pronounced, while low ecologisation shows no significant impact on TFP

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Why is it important?

The findings highlight promising opportunities for simultaneous economic and environmental gains, particularly in low ecologisation farms. To leverage this potential, policies should focus on targeted initiatives that encourage sustainable intensification and technological advancements, ensuring a harmonious balance between economic prosperity and environmental sustainability in agriculture.


Implications for policymakers include the need for focused actions that support long-term intensification and technological progress.

Professor Imre Ferto
Centre for Economic and Regional Studies, Hungarian Academy of Sciences: Budapest

Read the Original

This page is a summary of: The relationship between the ecologisation of farms and total factor productivity: A continuous treatment analysis, Journal of Agricultural Economics, July 2023, Wiley,
DOI: 10.1111/1477-9552.12563.
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