How much green for the buck：Estimating additional and windfall effects of French agro-environmental schemes by DID-matching.pdf

Journal of Environmental Economics and Management 65 (2013) 12–27 Contents lists available at SciVerse ScienceDirect Journal of Environmental Economics and Management journal homepage: /locate/jeem How much green for the buck? Estimating additional and windfall effects of French agro-environmental schemes by DID-matching ´ a,b,n a,c Sylvain Chabe-Ferret , Julie Subervie a ´ Irstea, UMR 1273 Metafort, F-63170 Aubiere, France b Yale University, Department of Economics, Cowles Foundation, New Haven, CT, USA c INRA, UMR 1110 MOISA, F-34000 Montpellier, France a r t i c l e i n f o a b s t r a c t Article history: Agro-environmental schemes (AES), which pay farmers to adopt greener practices, are Received 19 July 2010 increasingly important components of environmental and agricultural policies both in the Available online 2 October 2012 US and the EU. Here we study the French implementation of the EU AES program. Keywords: We estimate additional and windfall effects of five AESs for a representative sample of Agro-environmental schemes individual farmers using difference-in-difference (DID) matching. We derive the statistical Additionality assumptions underlying DID-matching from a structural household model and we argue Windfall effects that the