Curbing methane emissions from Italian cattle farms. An agroeconomic modelling simulation of alternative policy tools.

Methane (CH4) emissions from cattle farms have been prioritised on the EU agenda, as shown by recent legislative initiatives. This study employs a supply-side agroeconomic model that mimics the behaviour of heterogeneous individual farms to simulate the application of alternative economic policy instruments to curb CH4 emissions from Italian cattle farms, as identified by the 2020 Farm Accountancy Data Network survey. Simulations consider increasing levels of a tax on each tonne of CH4 emitted or of a subsidy paid for each tonne of CH4 curbed with respect to the baseline. Individual marginal abatement costs are also derived. Besides, to consider possible technological options to curb emissions, a mitigation strategy is simulated, with different levels of costs and benefits to appraise the potential impacts on the sector. Relevant reductions in operating income are foreseen, the most substantial in farm types and size classes characterised by lower levels of carbon productivity. The introduction of the mitigation strategy shows that the outcome in terms of mitigation potential, without undermining production level, highly depends on the implementation costs, but can also vary widely due to heterogeneous farms' economic performances. Policy implications are also derived.

Policy responses to COVID-19 pandemic waves: Cross-region and cross-sector economic impact.

This paper proposes a modelling approach to assess the cross-region and cross-sector economic impacts of the restrictions imposed by governments to contain the COVID-19 pandemic. The nationwide lockdown imposed in Italy during the first wave of the pandemic is used as a benchmark. However, the adopted approach allows an ex-ante assessment of alternative policy responses, in the event of successive pandemic waves, in order to rationalise the policy intervention and reach the best possible compromise between containing the risk of contagion and reducing economic losses. The used approach consists of a non-linear programming model based on a multiregional Input-Output (I-O) table, which guarantees greater flexibility than traditional I-O analysis. It is applied to estimate both direct and indirect losses of GDP and employment produced by alternative policy responses represented by general and differentiated lockdowns. The evidence deriving from the Italian experience shows a sort of learning process through successive waves based on the introduction of increasingly flexible and tailored policy responses to the pandemic.

The farm-by-farm relationship among carbon productivity and economic performance of agriculture.

The mitigation of agricultural greenhouse gases emissions is a globally relevant environmental and policy issue. For efficient mitigation, it is important to appraise whether and how much these emissions are linked to the economic performance of farms. This study aims to reconstruct a Carbon Productivity (CP) indicator at the farm level to analyse its eventual relationship with the farm's economic performance as measured by its Farm Net Value Added (FNVA). This assessment could allow emerging win-win situations where more emission-efficient farms are also more economically viable. This study is conducted at the micro-level using individual farm data extracted from the Italian Farm Accountancy Data Network from 2008 to 2017. The estimation procedure is based on a dynamic panel model that exploits the wide heterogeneity of farms using structural and policy variables. Results show that the relationship between CP and FNVA is non-linear and changes among farm types. Overall, absolute higher levels of CP seem to be associated with better economic performance, suggesting a double-dividend path of green growth for agricultural production. Policy implications drawn suggest tailored intervention according to farm type.

Approaches for reducing wastes in the agricultural sector. An analysis of Millennials' willingness to buy food with upcycled ingredients.

Upcycled ingredients are one of the most significant current trends in the food industry aimed to tackle the challenge of solid food loss reduction. This study investigates the potential market among Millennial consumers for products enriched with upcycled ingredients in Italy. We surveyed a sample of 317 Italian Millennial consumers, using a web-based survey. 62% of respondents declared to be informed about the existence of food made from upcycled ingredients and 53% declared to be willing to buy this novel food. Also, 69% of respondents think that food enriched with upcycled ingredients can bring environmental benefits, while only 40% believe that it can bring health benefits. Using a logit model to analyse consumer preferences, we found that food neophobia and food technology neophobia negatively impact on the likelihood of being willing to buy food produced with upcycled ingredients. Also, consumers who give high importance to food certification are less likely to be willing to buy upcycled foods. Contrariwise, reading labels and believing that upcycled foods are healthier or more environmentally friendly positively impacts on the willingness of Millennial consumers to buy these foods. Results for the sample analysed eventually suggest that giving right information to consumers about the environmental and health characteristics of the products, through clear labelling, could increase their market uptake thus helping to reduce food loss and contributing to reaching circular economy objectives in the agricultural sector.

Consumer Attitudes towards Local and Organic Food with Upcycled Ingredients: An Italian Case Study for Olive Leaves.

Food made with upcycled ingredients has received considerable attention in very recent years as a result of the need to both reduce waste and increase food nutritional properties. However, consumer acceptance of these novel foods is fundamental to their market uptake. This paper aims to assess the likelihood of the acceptance of food obtained from upcycled ingredients of olive oil productions and its association with some relevant recent consumption trends, such as organic food consumption and attention to food origin. In addition, particular attention is given to age group behaviors to appraise the differences between generations. Results suggest that, despite the negative influence of food technophobia, a core of sustainability-minded consumers seems to emerge that is interested in organic or local products, that could also favor the uptake of these novel food made with upcycled ingredients in the market. Results suggest that developing organic or "local" food products with upcycled ingredients can increase the probability of consumer acceptance.

CAP payments and agricultural GHG emissions in Italy. A farm-level assessment.

The Common Agricultural Policy (CAP) is an important external driver of European agricultural production. Nowadays and in its envisioned future structure post-2020, the CAP has among its major objectives tackling climate change, for what concerns both adaptation and mitigation strategies. However, little is known about the link between past CAP reforms and agricultural greenhouse gases (GHG) emissions. This paper investigates the possible role played by the Fischler Reform (FR) on the agricultural GHG emissions at the farm level. The FR represents a major CAP reform for which data availability allows an ex-post analysis about its actual impacts. The empirical analysis concerns a balanced panel of 6542 Italian Farm Accountancy Data Network observed over years the 2003-2007. Multinomial Logit models are estimated in sequence to express how the farm-level production choices, and the respective emissions, vary over time also in response to CAP expenditure. Results suggest that CAP expenditure had a role in the evolution of the farm-level emissions, though the direction of this effect may differ across farms and deserves further investigation.