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Impact evaluation of market imperfections and relevant policy measures

SUFISA - Sustainable Finance for Sustainable Agriculture and Fisheries



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WP3 analyzes the relation between market imperfections, efficiency variations in the sector and environmental impacts in an extended efficiency approach. The impact of market imperfections and relevant policy measures on the efficiency of farmers (objective 3) are investigated through the concept of value added. Value added measures to which extent actors in the food industry receive higher prices for their output than the prices that have been paid for the inputs used in the production process to produce that output. Value added is used to remunerate all inputs and is essential to study market imperfections. Both market power and asymmetric information are studied.


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Picture: SUFISA Project Meeting in Chania (Greece) in July 2018, © HNEE, Susanne von Münchhausen

One aspect of WP3 was the Sustainability Performance Analysis, which highlights that the design of alternative, sustainable agricultural systems and technologies is rapidly evolving. Sustainable agriculture implies the necessity for farmers to remain competitive. Therefore, farmers need to innovate continuously in order to adapt to market development and changes in resource quality and availability. Farmers must balance farm objectives that relate to a wide range of issues such as sustainability, in order to maximize income levels. Farmers need to take into account considerations related to the environmental, social, and economic impact of their activities. The farmers’ attitude towards sustainability affects intentions to implement specific farming strategies. We attempted to identify the sustainability driving factors that lead farmers to adopt a given decision or strategy. Our results are relevant for policy makers because they consider the relationship between policies and farmer behaviour to develop the most appropriate strategy and intervention to stimulate sustainability.
More information at: https://www.sufisa.eu/publications/

Next page: Solutions and scenarios






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This project has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement No 635577.

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