1. Do agri-environmental schemes reduce farm greenhouse gas emissions? : evidence from SloveniaŠtefan Bojnec, Imre Fertő, 2026, izvirni znanstveni članek Opis: Reducing greenhouse gas (GHG) emissions from agriculture is a key objective of the European Union's Green Deal and is among considerations of the Common Agricultural Policy (CAP). Agri-environmental schemes (AES) are the main CAP instruments to promote more sustainable farming, yet their short-term climate effectiveness remains uncertain. This study provides the first farm-level evidence for Slovenia on whether AES participation reduces GHG emission intensity and whether effects differ across production systems. Using a balanced panel of 227 farms from the Farm Accountancy Data Network (2014–2021), we estimate dynamic treatment effects of AES adoption on net carbon dioxide-equivalent emissions per hectare, applying modern difference-in-differences (DiD) estimators for staggered adoption and extensive robustness checks, including alternative estimators, placebo tests, and dynamic conditioning. Results show that AES adopters had higher pre-adoption emission intensity, consistent with targeted uptake by higher-emission farms. However, estimated reductions in emission intensity during the first one to two years after adoption are small, statistically insignificant, and robust across specifications. These findings suggest that broad, practice-based AES may not deliver immediate, measurable climate benefits at the farm level, either because effects take longer to materialize or because current schemes are insufficiently targeted to high-emission sources. Policies that combine more precise targeting, climate-specific measures, and long-term monitoring may be needed to unlock the full climate mitigation potential of AES. Ključne besede: agri-environmental schemes, greenhouse gas emissions, difference-in-differences, agricultural policy evaluation, Slovenia Objavljeno v RUP: 13.04.2026; Ogledov: 101; Prenosov: 6
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2. Agri-environmental schemes reduce variable input costs : evidence from Slovenian farmsŠtefan Bojnec, Imre Fertő, 2026, izvirni znanstveni članek Opis: Agri-environmental schemes (AES) are central policy instruments designed to promote environmentally friendly agricultural practices by financially supporting the adoption of sustainable land management. While a substantial body of research examines how AES influence environmental outcomes and overall farm performance, far less is known about their direct effects on farm-level variable input costs, particularly in terms of energy, fertilizer, and crop protection expenditures. Existing studies typically analyse eco-efficiency or broad economic-environmental indicators, leaving a critical empirical gap regarding whether and how AES reshape the cost structure of farms during and after adoption. This study addresses this gap by estimating the causal impact of AES participation on key variable input costs using Slovenian Farm Accountancy Data Network data and a Differences-in-Differences (DID) design with staggered adoption, supported by robustness and sensitivity analyses. The findings indicate that AES participation leads to significant reductions in pesticide and energy costs, while fertilizer expenditures tend to increase in the short term before stabilizing or declining over time. These patterns suggest that AES trigger structural adjustments in production—such as reduced tillage intensity and transitions to organic or biological inputs—that can initially raise some input costs but contribute to longer-term sustainability. The study therefore offers new empirical evidence on the cost implications of AES, improving understanding of how environmental policy instruments affect farm-level economic decisions. These insights are essential for designing AES that support both environmental objectives and the economic viability of farmers, particularly in regions where sustainability transitions may involve short-term trade-offs. Ključne besede: agri-environmental schemes, resources in agriculture, energy, fertilizer, crop protection, variable input costs, Slovenian agriculture Objavljeno v RUP: 23.03.2026; Ogledov: 205; Prenosov: 6
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3. Assessing the economic effects of agri-environmental schemes on farm input useImre Fertő, Štefan Bojnec, 2025, objavljeni povzetek znanstvenega prispevka na konferenci (vabljeno predavanje) Opis: . This study assesses the economic impacts of agri-environmental schemes (AES) on farm-level input expenditures, particularly fertilizers, crop protection products, and energy, in Hungary from 2014 to 2020. Employing advanced econometric methodologies, including Synthetic Difference-inDifferences (SDID), Synthetic Control (SC), and traditional Difference-in-Differences (DiD), the analysis addresses the complex challenges posed by staggered AES adoption and significant farm-level heterogeneity. The findings indicate no statistically significant overall change in expenditures for fertilizers, crop protection, and energy. Nonetheless, detailed temporal analysis reveals nuanced dynamics. During the initial phases of AES implementation, transitional inefficiencies are evident, indicating adaptation challenges and associated costs as farmers adjust to new environmental requirements. These initial costs stem from administrative burdens, the need for training, and investments in sustainable practices such as precision agriculture and integrated pest management (IPM). Over subsequent years, the results exhibit stabilization or slight increases in input expenditures rather than substantial cost savings. Such trends suggest that while AES may encourage environmentally sustainable farming practices, the expected economic benefits from reduced inputs—due to input substitution or increased efficiency—may not be immediate or uniformly achievable. Indeed, more precise and environmentally-friendly alternatives to traditional chemical inputs, despite their ecological advantages, can incur higher short-term costs. Further analysis highlights considerable heterogeneity in AES impacts across different farm sizes and adoption timing. Larger, more technologically advanced farms display a relatively smaller incremental cost increase, benefiting from economies of scale and superior resource access, yet these differences are minor and statistically inconclusive. Early adopters, defined as farms participating in AES from the scheme’s initial stages, showed no systematic economic advantage or disadvantage compared to later adopters, indicating a consistent adaptation pattern across all participating farms. Robustness checks, including random treatment falsification tests and analyses on never-treated farms, reinforce the credibility of the findings, affirming that observed AES impacts genuinely reflect causal relationships rather than selection biases or confounding factors. The study concludes that the complex interplay between policy design, farm structure, market dynamics, and adaptation processes can obscure immediate economic outcomes. Therefore, it underscores the need for more tailored AES interventions that consider farm-specific constraints, transitional costs, and longterm adaptation dynamics. Additionally, integrating broader sustainability indicators—biodiversity, soil quality, and resilience metrics—could yield a more comprehensive evaluation of AES efficacy. This research contributes important empirical evidence to ongoing discussions regarding the economic viability and environmental effectiveness of AES within diverse agricultural landscapes. Policymakers are encouraged to account for initial adaptation phases, support targeted technological and management innovations, and embrace regionally customized strategies to optimize both ecological and economic outcomes of AES policies. Ključne besede: agri-environmental schemes, input expenditures, synthetic difference-in-differences, policy evaluation Objavljeno v RUP: 18.08.2025; Ogledov: 639; Prenosov: 4
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4. Agri-environmental schemes and input costsŠtefan Bojnec, Imre Fertő, 2025, objavljeni povzetek znanstvenega prispevka na konferenci (vabljeno predavanje) Opis: Agri-environmental schemes (AECS) are integral components of the European Union’s Common Agricultural Policy, designed to promote environmentally sustainable farming practices and mitigate the adverse impacts of agriculture on ecosystems by providing financial incentives to farmers (Unay-Gailhard and Bojnec, 2016; Ait Sidhoum, Canessa, and Sauer, 2023). This study analyses the impact of AES participation on variable input costs for energy consumption, fertilizer use, and crop protection in Slovenia. Findings indicate that AES participation significantly reduces fertilizer, pesticide, and energy costs. While AES lower input costs, they may also lead to short-term yield reductions, potentially affecting farm profitability and farm efficiency (Baráth, Fertő, and Bojnec, 2020). These results highlight the need for complementary policies that enhance sustainable yield improvements and farm resilience. By promoting resource-efficient practices, AES contributes to reducing environmental externalities such as soil and water pollution and improving population wellbeing (Fukuyama, Hashimoto and Weber, 2020). The study underscores AES as essential for the transition to sustainable agriculture while emphasizing the challenge of balancing environmental, economic, and other sustainability objectives (Fertő and Bojnec, 2024, 2025). Policymakers should consider strategies that support both ecological benefits and farm income stability, ensuring long-term agricultural sustainability and resilience in the face of environmental and economic challenges. Ključne besede: agri-environmental schemes, costs, energy, fertilizer, crop protection, Slovenia Objavljeno v RUP: 18.08.2025; Ogledov: 668; Prenosov: 7
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