Assessing the environmental sustainability of Portuguese agriculture

Agricultural activity is simultaneously a supplier and consumer of biocapacity. In this sense, the methodology based on the Ecological Footprint and biocapacity is particularly useful for evaluating the environmental sustainability of agricultural practices. This article aims to assess the environmental sustainability of Portuguese national and municipal agriculture systems (cropland and livestock) by a synthetic indicator (Ecological Balance) applied to the 278 municipalities of mainland Portugal, based on the Ecological Footprint approach. After identifying regional clusters through a spatial data analysis, the article uses a spatial econometrics model to evaluate the relationship between the environmental sustainability of agricultural practices and the distribution of the European Common Agricultural Policy (CAP) support in Portugal. The Ecological Balance of Portuguese agriculture is globally negative. However, it is based on great regional heterogeneity. Profitability negatively affects the environmental performance of agriculture. As a worrying element, the results point to a negative relationship between the support of the CAP and the agricultural Ecological Balance of each municipality. Results support the need for recalibration of CAP financing mechanisms, with greater emphasis on ecological performance and sustainability.