Research on World Agricultural Economy

Rationale of Government Policies on Agricultural Productivity and Sustainability: A European Perspective

Fotios Chatzitheodoridis

Department of Management Science and Technology, University of Western Macedonia, 50100 Kozani, Greece

Konstantinos Spinthiropoulos

Department of Management Science and Technology, University of Western Macedonia, 50100 Kozani, Greece

Efstratios Loizou

Department of Management Science and Technology, University of Western Macedonia, 50100 Kozani, Greece

Dimitrios Kalfas

Department of Business Administration, University of Western Macedonia, 51100 Grevena, Greece

Stavros Kalogiannidis

Department of Business Administration, University of Western Macedonia, 51100 Grevena, Greece

Efstathios Gortsilas

Department of Management Science and Technology, University of Western Macedonia, 50100 Kozani, Greece

DOI: https://doi.org/10.36956/rwae.v6i2.1712

Received:2 February 2025 | Revised: 10 March 2025 | Accepted: 14 March 2025 | Published Online: 23 May 2025

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Abstract

In recent years, the European Union has placed a strong emphasis on the development of government policies that promote agricultural productivity and sustainability. As global challenges such as climate change, resource scarcity, and environmental degradation have continued to pose significant hurdles to EU countries, governments have formulated guidelines in a bid to address food security, economic growth, and the environment. The present study relied on a cross-sectional research design and collected data from 278 stakeholders in the Greek agricultural sector in 2023. These were government subsidies for farming, environmental policies, and public spending on research and development in the agricultural sector. This research confirms that government subsidies positively influence agricultural productivity and provides reliable data on how subsidies facilitate the spread of advanced technology and environmentally friendly farming techniques. In addition, the environment generally benefits agriculture where it is most influential in affecting crop productivity through the improvement of soil health, water quality, and the protection and enhancement of the biological resource base. The government funding for agricultural research is vital for reinforcing innovation, particularly focusing on climate-wise farming and use of digital solutions. The implication for policy is that current EU agricultural policies are multilayered and geared towards meeting both environmental objectives and food production competitiveness. This research fills the gap in knowledge on the EU agriculture and can serve as a guideline for further reforms in Europe and in the rest of the world.

Keywords: Government Policies; Government Subsidies; Government Funding; Agricultural Productivity and Sustainability; Europe

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