Assessment of the impact of agricultural support on crop diversity

Abstract

This study examines the impact of agricultural support on crop diversity measured by a diversity index. Our results indicate that agricultural subsidies have a limited effect on agricultural biodiversity. By using unique farm-level data, we show that subsidies support the income of farmers rather than the agricultural biodiversity. The results are robust regarding the size, practice management and altitude of the agricultural holdings' operations and various measures of agricultural biodiversity. However, when interpreting the results, the limitations of biodiversity indices should be considered.

Keywords

• biodiversity index
• czech republic
• panel data regression
• subsidies