The evolution of agricultural GHG emissions in Italy and the role of the CAP A farm-level assessment

This paper firstly aims at proposing and applying a methodology to reconstruct the agricultural GHG emissions and the consequent Carbon Footprint at the farm level. This allows investigating how the emission performance of Italian farms evolves over time also distinguishing among different typologies of farms and territories. Secondly, the paper attempts to put forward some hypotheses explaining the observed heterogeneous evolution of the farm-level CF. In particular, the attention focuses on the possible role of the Common Agricultural Policy (CAP) here intended both as the 2005 reform of its first pillar and those second pillar’s measures targeted to activities and practices that have a direct impact on the CF. The empirical analysis concerns a balanced panel of Italian FADN (Farm Accountancy Data Network) farms observed over years 2003-2007. This period covers the 2003/2005 reform of the first pillar of the CAP as well as the full application of the second pillar’s measures for the 2000-2007 programming period. A tentative estimation of the farm-level CF and its link to the farm-level delivery of CAP payments is thus provided. Results, although interesting and encouraging, deliver unclear and ambiguous evidence on the role of both aspects of the CAP on the observed CF performance and evolution. Several improvements seem needed to achieve more conclusive evidence putting forward appropriate theoretical concepts, models and econometric approaches to make this assessment more sound and robust, in order to inform the debate and the decisions about the proper policies to mitigate agricultural GHG emission.