Output Effects of Agri-environmental Programs of the EU

average as well as for 95% of our regressions. However, the t-value is not significant on
average. Five more programs have a negative impact on average, but the upper limits are
positive. Two program have a positive impact on average, but also at low statistical
significance level. With a range from 0.34 - 0.36, the R2-values are quite satisfactory. The
non-OEPUL yields account for about 85% of yields in 1997.

Table 2

Conclusion

By definition agri-environmental programs of the EU aim not only at improving
environmental quality, but also at reducing overproduction. Beside agri-environmental
programs are policies under the Green box. Hence, they are supposed to ‘have no, or at least
minimal trade distorting effects or effects on production’ (Annex 2 of the Agreement of
Agriculture, signed in Marrakech). This study empirically measure the success of agri-
environmental programs in regard to the objective of reducing production levels. In particular,
we investigate the impact of ten agri-environmental programmes in Austria, the EU country
where agri-environmental programs played the most important role (e.g. about 75% of
agricultural land participated at least in one agri-environmental measure; around 17% of total
EU agri-environmental budget is transferred to Austrian farmers), on grain yields. From the
ten programs analysed, only two showed a significant negative impacts on yields.

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