Parametric versus non-parametric simulation

Most of ex-ante impact assessment policy models have been based on a parametric approach. We develop a novel non-parametric approach, called Inverse DEA. We use non parametric efficiency analysis for determining the farm’s technology and behaviour. Then, we compare the parametric approach and the Inverse DEA models to a known data generating process. We use a bio-economic model as a data generating process reflecting a real world situation where often non-linear relationships exist. Results suggest that traditional parametric approaches are biased and inconsistent. The Inverse DEA model under variable return to scale preserving technical efficiency scores outperforms any other specifications. However such non-parametric approach is by nature sensitive to noise which hampers its accuracy when it prevails. The use of panel data is preferable

Welfare analysis of organic dairy certification : a graphical assessment

Today, the concept of sustainable growth is at the heart of political debate. However, this concept still eludes practical meaning and often organic agriculture and sustainable agriculture are intertwined. This paper focuses specifically on organic dairy product and the potential welfare impacts of the Transatlantic Trade Investment Partnership between the European Union and the United States. To evaluate the welfare impact of the TTIP, we use the extend traditional welfare analysis proposed by Brusselaers et al., 2015 to account for organic certification. Graphical assessment shows that by internalizing externalities American consumers and European Consumer gain welfare, and American consumers and European Producers loss welfare. In such case European policies supporting organic farming system benefit to the American consumers

SIMULATING FARM LEVEL RESPONSE TO CROP DIVERSIFICATION POLICY

One of the new political instruments of the European Common Agricultural Policy-reform is the crop diversification measure. To comply with this measure, arable farmers will have to grow a minimum number of crops on their land, in given proportions. In this paper a non-parametric simulation model is developed to predict land cover changes while tackling the self-selection problem. Farmers’ behaviour is based on their closest peer‘s behaviour. A comparison between the results on diversity, measured through the Shannon Diversity Index, and the policy impact on farms, shows a clear trade-of and a potential for targeting

Tackling modelling and policy challenges of the "greening" of the Common Agricultural Policy /

Thesis submitted in fulfillment of the requirements for the degree of Doctor (PhD) in Applied Biological Science