Epsilon Archive for Student Projects

Abstract

This study investigates the influence of certification schemes: EKO, KRAV, and IPSigill, on the economic performance of animal production, thereby addressing a research gap on the well-explored subject of organic farming.

While previous research has explored the economic benefits associated with organic farming, the economic benefits of other certification schemes remains less studied. This study examines the clustering effects associated with EKO, KRAV, and IPSigill certifications on the economic performance of animal production. Using a combination of primary and secondary data, I employ two-way fixed-effect models to analyze how the regional concentration of certified producers influence the value added of animal production over a ten-year period (2010-2020) across Swedish harvest areas. By calculating a localization quotient for EKO, KRAV and IPSigill certified producers, I assess whether regional specialization is correlated with increased value added.

The findings reveal a statistically significant and positive association between certification clustering and economic performance among certified animal producers, highlighting the spillover benefits associated with certification concentration beyond organic farming. This study contributes to the literature by expanding the discussion on the economic performance and agglomeration effects of certification schemes by including additional certifications such as EKO, KRAV and IPSigill. The results provide valuable insights to farmers, certification organizations, and policymakers to promote sustainable practices and enhance economic viability in agriculture.