Impact of economic and environmental factors on agricultural product pricing in the EU
DOI:
https://doi.org/10.51599/are.2024.10.04.03Abstract
Purpose. The article analyses the influence of economic and environmental factors on the pricing of soft wheat in four leading agricultural economies in the European Union – France, Germany, Italy and Spain, during the period 2000–2022.
Methodology / approach. The methodology involves collecting and analysing data on common wheat selling prices, ammonia emissions, areas under organic farming and production value through descriptive statistics and graphical methods. For more in-depth analysis, correlation analysis and multiple linear regression analysis are used, which identifies the main factors influencing prices and forecasts future market trends.
Results. The analysis shows that in all the countries considered, production value has a consistently positive influence on wheat prices, underscoring the importance of investments in production. Ammonia emissions and the share of organic farming have varying effects on prices in different countries, reflecting specific national conditions and regulations. For example, ammonia emissions significantly negatively impact prices in Germany and Spain, while in France and Italy, this effect is weaker or absent. On the other hand, organic farming has a negative impact on prices in France and Italy, which may be due to greater supply and competitiveness in the organic markets in these countries. The findings highlight the role of environmental and economic factors in agricultural product pricing and can guide the development of policies for sustainable development.
Originality / scientific novelty. The scientific novelty lies in integrating vital environmental factors – emissions and organic farming – with a significant economic indicator, such as production value, into a single pricing model. This holistic approach allows an in-depth analysis of the combined impact of environmental and economic factors on price trends in the EU’s leading agricultural economies.
Practical value / implications. In a broader context, the study provides empirical evidence that can be used to inform the EU policies in agriculture, environment and sustainable development. Its findings can serve as a basis for reviewing and adapting existing regulations and programmes to achieve a more balanced and sustainable ecosystem in the region’s agricultural sector.
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