Analysing organic eco-scheme uptake in Sweden

Details

Supervisors

Gaspart, Frédéric

Faculty

Faculté des bioingénieurs

Degree label

Master [120] en sciences agronomiques et industries du vivant, à finalité spécialisée: Agricultural, Food and Environmental Policy Analysis

Abstract

In 2023, a new agricultural policy measure was introduced to the European Union’s Common Agricultural Policy called Eco-Schemes. Member states have the opportunity to design the Eco-Schemes at national level and Sweden implemented an Eco-Scheme supporting organic agriculture to replace a previous measure for organic production support. The organic Eco-Scheme differs in its design compared to its predecessor and the transition to the new policy is not well understood. Hence, there is a need to analyse the effects of the introduction on farmers’ uptake of organic practices and the resulting environmental implications. The precise formulation of the research question is “What are the effects of the new organic Eco-Scheme in CAP 2023-2027 on farmers’ uptake of organic agricultural practices and their environmental impacts in Sweden?”. The econometric analysis of the research question includes a two-stage panel data model and a Hausman-Taylor model with instrumental variables. The findings are summarised in four conclusions. First, the introduction of the organic Eco-Scheme in 2023 has no significant average effect on the uptake of organic production support in Sweden. Second, the uptake of organic agriculture has a negative average impact on the Shannon-Functional-Diversity-Index in Sweden and the change in uptake rate specific to the Eco-Scheme introduction does not mitigate this issue more than its predecessor. Third, an increase in uptake of organic agriculture in Sweden may positively affect the area of perennial grasses, but the change of uptake rate associated specifically with the Eco-Scheme introduction is neither more nor less efficient in doing so, compared to its predecessor. Fourth, pasture as an agri-environmental indicator is not affected by the practice of organic agriculture and the introduction of Eco-Scheme in 2023 has not changed that situation in Sweden. This thesis has primarily covered the environmental aspects of the organic Eco-Scheme introduction in Sweden, and serves as guidance for agricultural policy makers in the pursuit of developing agricultural policies that are truly effective and efficient.