The impact of environmental attitudes of farmers on efficiency in the agricultural sector in the European Union

The aim of this paper is to investigate whether the more pro-environmental attitudes of farmers influence the technical efficiency of agricultural sectors in EU regions (NUTS-2). To answer this, I employed data envelopment analysis (DEA) for efficiency analysis combined with the double bootstrapped truncated regression to investigate the relationship between environmental attitudes and technical efficiency. I found that this relationship is positive, i.e. pro-environmental attitudes were related to greater efficiency. An increase in the environmental attitude variable by one standard deviation led to an improvement in efficiency of 2.8-6 p.p. The higher share of farmers with formal training also proved to be a positive and significant determinant of efficiency. The share of arable land on which conventional tillage was used, and soil erosion proved to be significant but negative determinants of efficiency. Policymakers should present to farmers the environmental benefits of agricultural policy but should also highlight that greater environmental awareness translates into a more efficient operation.