Do Structures Matter in the Process of Sustainable Intensification? A Case Study of Agriculture in the European Union Countries

In this paper, we proposed a new approach to the sustainable intensification (SI) process in agriculture in the EU Member States. In contrast to previous studies, we measured SI on a sectoral level and emphasised its dynamic rather than static nature. On the basis of Eurostat data of 27 EU countries in the period of 2005-2018, we used the Malmquist-Luenberger index to evaluate improvement in environmentally and socially adjusted total factor productivity (TFP). In 42% of cases in our sample, we observed the SI process defined as TFP increase. Subsequently, we tested the impact of structural changes on the SI process. On the basis of the panel logit model, we conclude that, in the European Model of Agriculture, where basic environmental and social issues regarding agriculture are regulated, in order to become aligned with sustainable intensification, agricultural production should become concentrated in larger farms with less labour-intense production-units capable of investments in innovative, green technologies.