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Evaluating policy impact under sparse and staggered adoption. A synthetic difference-in-differences application to EU
1Department of Economics and Social Sciences, Università Politecnica delle Marche, Ancona, Italy.
Evaluation and Program Planning
|January 10, 2026
Summary
Farmers
Area of Science:
- Agricultural Economics
- Environmental Policy
- Public Policy Analysis
Background:
- Examining farmer responses to EU Common Agricultural Policy (CAP) measures.
- Assessing whether voluntary adoption of policies, driven by private interests, yields societal benefits.
- Addressing methodological challenges of staggered and sparse policy adoption.
Purpose of the Study:
- Investigate farmer responses to targeted EU Common Agricultural Policy (CAP) measures.
- Distinguish between private and societal outcomes of policy adoption.
- Evaluate the effectiveness of voluntary adoption in achieving societal goals.
Main Methods:
- Developed a theoretical framework to differentiate private and societal outcomes.
- Employed a Synthetic Difference-in-Differences (SDID) approach.
- Utilized a balanced panel of Italian farms (2014-2022) focusing on second-pillar CAP measures.
Main Results:
- Some CAP measures significantly improved private farm outcomes like income and productivity.
- The impact of these measures on societal outcomes, such as environmental indicators, was less consistent and weaker.
- Highlighted challenges in estimating policy effects with limited, diverse treated units and staggered adoption.
Conclusions:
- Voluntary adoption of CAP measures shows mixed results for societal benefits.
- The effectiveness of policies in achieving environmental goals requires further investigation.
- SDID is a suitable method for analyzing staggered adoption, but practical limitations exist.
Keywords:
Causal Inference in Policy EvaluationFarmers’ Decision-MakingRural Development PolicyStaggered TreatmentsSynthetic Difference-in-DifferencesMore Related Videos
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