This dissertation comprises three essays which analyse the linkages between agri-environmental policies and the environment intermediated by farmers’ attitudes about environmental quality, and also the linkages between agricultural trade policies and environment.
The first essay specifies a random utility model that explains Romanian farmers’ preferences as regards water pollution abatement controlling for heterogeneity of tastes using a binary logistic regression. Variables found to influence choice include age, education, access to agri-environmental information, land ownership and investment behaviour.
The second essay highlights the factors influencing Romanian farmers’ decision-making on participation in organic farming programmes using structural equation modelling with latent variables. Among the attitudinal and socio-economic latent variables included in the model, environmental risk perception has been found to be the strongest determinant of farmers’ propensity to participate in organic farming.
The third essay analyses the impact of trade on environment in Romania using a partial equilibrium model of bilateral beef trade between Romania and the EU. We consider two scenarios for the non-accession and accession case, produce a market outlook throughout the year 2011 based on assumptions regarding full trade liberalisation between the EU and Romania and income change in Romania and analyse the impact on environment. The simulation results suggest that the increase in beef imports in the accession scenario at a higher rate than in the non-accession scenario relates to an improvement in the environmental quality.