1. Introduction
The sustainability of the agricultural practices has been longstanding at the forefront of the policy agenda in the European Union (EU). In fact, agriculture, while sustaining food production, is responsible for great impacts on the environment [
1]: A remarkable example is the livestock sector [
2,
3]. Since the 1992 reform, the Common Agricultural Policy (CAP) paid special attention to the improvement of environmental performances of farmers; the mid-term review of the CAP in 2003 emphasised farmers’ responsibility to adhere to a set of environmental, food quality and animal welfare standards. The greening of the direct payments, introduced in the EU greening reform in 2013, stimulated the transition towards more sustainable systems [
3]. In addition, the greening architecture of the CAP 2014–2020, which reinforced mandatory and voluntary measures of cross-compliance, reflects the increasing political interest in the environmental implications of agricultural practices. In particular, the Council Regulation (EC) No. 73/2009 ratifies a mandatory ‘cross-compliance’ (Chapter I), based on which a farmer receives direct payments conditional to the compliance with Statutory Management Requirements (Article 5, Annex II) and Good Agricultural and Environmental Condition (Article 6, Annex III). One of the Statutory Management Requirements is animal welfare (Article 5(1c)), laying down minimum standards for the protection of animals that Member States have to achieve. Currently, the cross-compliance is regulated by the Regulation (EU) 1306/2013 (Article 93).
In such a framework, the livestock sector is receiving high pressures to address sustainability challenges, both from environmental and social perspectives [
4]: In fact, the contribution of livestock farming to greenhouse gas (GHG) emissions and to worsening of animal welfare have become topics of utmost importance.
The livestock sector exerts a large influence on global GHG emissions, causing environmental impacts particularly relevant in areas with high density of livestock [
5]. Livestock husbandries contribute to 35–40% of total anthropogenic methane emissions: Main sources are enteric fermentation (32%) and manure management (7%) [
6]. Leaching nitrates, that livestock release into the environment, increases the nitrogen load of fields: major contributors are cattle farms (58%) [
7].
The environmental impacts associated with the livestock sector are particularly relevant due to the increasing demand for animal-based foods: In 2050, consumption of meat and dairy produce are expected to increase by 73% and 58%, respectively [
8]. The consequent intensification of livestock production raises environmental and ethical concerns [
9]: As livestock density increases, animal welfare may be adversely affected, with negative consequences on quality and safety of their production. In fact, a conflicting relationship links welfare and livestock productivity: Intensive techniques for livestock production ensure cheaper animal-based products to the detriment of animal welfare, and vice-versa, the higher the welfare standards the higher the price of livestock production [
3].
The term ‘welfare’ is not uniformly defined and used in the literature. According to Broom [
10], welfare is a state of mental and physical health, where the animal is in harmony with its environment. The concept of animal welfare may be associated with the normal biological functioning of the animal, the emotional state of the animal, and the ability of the animal to express certain normal behaviours. Animal welfare is based on (but not restricted to) a set of principles, the ‘Five Freedoms of Animal Welfare’ developed by the UK Farm Animal Welfare Council (FAWC) in 1979: freedom from hunger and thirst; freedom from discomfort; freedom from pain, injury or disease; freedom to express normal behaviour; freedom from fear and distress [
11,
12].
Improving the sustainability of livestock production would contribute to mitigating environmental impacts in terms of GHG emissions (i.e., improvement of environmental sustainability), and ethical concerns such as problems of animal welfare (i.e., improvement of social sustainability). Policymakers respond to these concerns by developing policy instruments intended to ensure animal welfare. An example are farmer-based policies: They compensate livestock farmers for the incremental cost of ensuring higher animal welfare levels, in case of consumers’ low willingness to pay [
13]. The aim of animal-based policies is to improve productive performances of livestock and to obtain animal-based foods that are safe and of higher quality. However, they may be related to wider environmental and social implications that merit case-specific assessments.
There is an urgent need to mitigate the environmental impacts by reducing agricultural, and in particular, livestock emissions, while also ensuring an efficient production respectful of the animals’ conditions. Animal-based policies seem to be a key solution to improve productivity and environmental performances at once: they may contribute to meeting the common European Energy and Animal Welfare Strategies [
3].
Although animal welfare is relevant to improving the productivity of livestock and the profitability of the livestock sector, farmers raise increasing concerns on the lack of market compensation for extra costs related to higher levels of animal welfare. The issue is in the spotlight: In fact, the European Parliament approved a resolution on the need to adopt a new strategy for animal welfare for the period of 2016–2020, intended to ensure stricter and scientific-based regulations on animal welfare.
A number of recent studies deal with these issues from different points of view (
Table 1). Overall, studies on the GHG emissions associated with the livestock sector conclude that the higher intensity of GHG emissions, at the farm stage of livestock products, compared to other food production [
14,
15,
16,
17]. In addition, it has been demonstrated that significant reductions in the GHG emissions intensities in livestock production are achievable through enhanced manure management, but also by improving the welfare status of animals [
18,
19,
20]. In particular, Nieto et al. [
21] assessed the GHG emission performances of beef production in Argentina and suggest that the GHG emissions are lower in farms with improved standards of animal welfare. Improving the welfare status of livestock is a way to ensure high production efficiency of livestock, while keeping the GHG emission intensity at the minimal level [
22]. Also Pelletier et al. [
4], who deepened on environmental and socio-economic sustainability of the Canadian egg production industry with a particular focus on animal welfare, recommend the development of management strategies to optimise production in alternative housing systems, able to ensure more environmentally sustainable outcomes.
While a number of studies have investigated the implications of animal welfare provisions on the environmental performance of the livestock sector, to the best of our knowledge none have analysed which factors affect the adoption of measures of animal welfare. We aimed to fill this gap by investigating if site-specific characteristics are able to influence the definition of the political line at a regional level, with consequent impacts on the decision to adopt measures of animal welfare and the magnitude of the related budget. Our focus is on Measure 215 of Rural Development Programmes (RDP) 2007–2013, applied to cattle farms in Italy. Measure 215, regulated by the Council Regulation (EC) No. 1698/2005 (Articles 36(aV) and 40), provided annual subsidies for livestock farmers that voluntary adopted standards to ensure animal welfare higher than mandatory requirements listed in the Council Regulation (EC) No. 1782/2003 (Article 4, Annex III). Measure 215 compensated livestock farmers for incremental costs, or losses of income, of ensuring higher animal welfare levels (e.g., improvement of housing conditions) for a period ranging between five and seven years. We also quantified the environmental impacts, in terms of methane and nitrous oxide emissions, associated with the adoption of Measure 215 in Italy, by providing regional and provincial details. We comment on technical and political considerations, and conclude on how the measure may conciliate environmental and ethical issues. Our contribution would be of interest for policymakers that are planning to implement animal-based policies.
2. Materials and Methods
2.1. The Econometric Model
In order to investigate factors affecting the adoption and the magnitude of the budget allocated to measures of animal welfare (Measure 215), by regional Rural Development Programmes 2007–2013, we performed econometric analyses to assess how the characteristics specific for the
i-th province in the
j-th region influenced the decision to activate the Measure and the decision on budget allocation:
where the dependent variable (
) is regressed on the province-specific livestock units (
), and utilised agricultural area (
). We also controlled for
size classes of livestock (
).
,
, and
are the parameters to be estimated;
is a constant and
an i.i.d. error term.
Equation (1) is estimated through a Probit model to address the research question on the decision to activate the Measure, and through a Tobit model to address the decision on budget allocation. We use the Probit model to identify the drivers affecting the probability of implementing measures of animal welfare (i.e., extensive margins of Measure 215). In addition, the Tobit model allowed us to investigate which factors influenced the magnitude of the budget allocated to animal welfare in regions where the measure was implemented (i.e., intensive margins of Measure 215).
In other words, the Probit model allowed us to understand which factors influence the probability that the measure of animal welfare is adopted (or not) in a certain region; given the adoption of the measure of animal welfare, the Tobit model helps in analysing how the budget for measure of animal welfare is allocated across regions (
Figure 1).
The dependent variable () is a dummy variable (Measure active or not) in the Probit model and a continuous left-censored variable (relative budget for the Measure, compared to the budget for the regional Rural Development Program) in the Tobit model. The dummy variable equals 1 if Measure 215 was implemented in the j-th region, and 0 otherwise. The dependent variable of the Tobit model equals the incidence of financial resources allocated for Measure 215 on the total budget of the European Agricultural Fund for Rural Development (EAFRD) in the j-th region.
The Probit model is estimated controlling for the work intensity for livestock, expressed as the ratio between livestock unit (LU) and annual working unit (AWU), and the number of farms that adopted organic production methods. The rationale is that the greater the work intensity for livestock, the more the attention to animal welfare. Similarly, provinces that attach more attention to organic production methods tend to be open to animal welfare issues.
We did not introduce these two control factors in the Tobit model: They are likely to be correlated to the probability that Measure 215 was adopted (or not) in a certain region, but they were not able to influence the relative budget for Measure 215.
In order to refine our models, we estimate five specifications using as independent variables different statistics of the distributions of LUs and UAA. The model using total LUs and UAA allowed us to have an overall assessment of factors affecting the adoption and the magnitude of the budget for Measure 215. Minimum, maximum, and average LUs and UAA, as well as the difference between maximum and minimum LUs and UAA help the understanding of the influence of province-specific characteristics in the definition of the political line at a regional level. It should be noted that the use of extreme statistics is necessary in that while dependent variables are regional-specific, the variability is provided by different values at the provincial level. Put differently, the model must capture the “within” variation (where the term “within” is specific of panel data econometric models).
Table 2 lists and describes the dependent and independent variables.
We used cross-sectional data referring to 2010, due to the limited availability of data at regional and provincial levels. We collected information on 20 Italian regions and 107 provinces. Data were from the Italian database of the livestock registry (BDN) for LUs and size classes of livestock, from the 6th General Agricultural Census [
26] for UAA, LU/AWU, and the number of farms with organic production methods. The official website of Rete Rurale Nazionale provides information on regional Rural Development Programmes (RDPs) from 2007–2013, on measures of animal welfare and the relative budget.
2.2. A Quantification of the Environmental Impacts
The livestock sector exerts a large influence on global greenhouse gas (GHG) emissions [
25]: Livestock-related emissions mainly concern methane (CH
4) and nitrous oxide (N
2O) and, to a lower extent, carbon dioxide (CO
2). CH
4 emissions are a by-product of enteric fermentation and of manure management; N
2O emissions come from manure management, and from manure applied to soil or left on pasture [
29].
The higher the intensity of livestock units (LUs) per hectare of utilised agricultural area (UAA), the greater the environmental impacts in terms of CH
4 and N
2O emissions:
where
indexes alternatively emissions of CH
4 and N
2O; the environmental impacts (
) depend on the livestock intensity (
) in the
i-th province in the
j-th region, and on the implied emission factor (
) specific for CH
4 and N
2O;
is a constant measuring the degree of improvement of livestock intensity (in percentage) due to the adoption of Measure 215.
Data on values depend on the region and the country average annual temperature. They are country-specific, refer to 2010, and are expressed in kg CH4 head−1 for CH4 and in kg N2O-N kg N−1 for N2O. Data were collected from the Faostat database, which uses Tier 1 default Intergovernmental Panel on Climate Change (IPCC) emission factors combined with country average annual temperatures.
Animal-based policies affecting livestock intensity are likely to influence both the levels of animal welfare and of GHG emissions. In fact, an improvement in livestock intensity may be achieved through a reduction of the number of LUs, being equal the UAA. Such a strategy is in line with the European Convention for the Protection of Animals kept for Farming Purposes, which outlines general principles intended to avoid unnecessary pain, suffering or injury due to unsustainable housing, environmental, and feeding conditions. But an approach based on the reduction of livestock numbers may also be beneficial for the sustainability of the environment. In fact, as suggested in Garnett [
23], the lower the intensity of livestock, the higher the GHG saving: The trade-off consists in outweighing high emissions per unit through a significant reduction in numbers of units.
Accordingly, we assume that the environmental impacts () depend on the degree of improvement of livestock intensity, achievable through a progressive, linear decrease () in the ratio . We quantified these effects by measuring how the environmental impacts vary according to different levels of improvement in livestock intensity. In particular, we considered five scenarios and assessed the environmental impacts at a national level related to a progressive decrease of the livestock intensity, with ranging between −10% and −50%.
4. Discussion and Conclusions
Our analysis is an ex post assessment of animal-based policies, such as Measure 215 of the Rural Development Programmes (RDP) 2007–2013, intended to ensure higher levels of animal welfare.
The results highlighted that the problem of animal welfare is highly perceived in regions with high density of livestock: thus it is more likely that animal-based policies are adopted in regions with greater environmental impacts.
We also found that, once Measure 215 had been adopted, financial resources tended to be allocated in regions where the problem of animal welfare is emphasised or where the high propensity to the agricultural sector drives the bargaining position of those regions.
It is worth mentioning that, in our sample, Measure 215 tended to be adopted by regions with particularly relevant environmental impacts, such as Veneto, Campania, Piedmont, and Aosta Valley. Our results are in line with Pereira and Martinho [
31], who argued that the emission performance of policies is highly differentiated and site-specific. Information on agricultural emissions at the regional level may be important indicators to assess whether the demands for emissions reduction targets, set by government, are likely to be met [
25,
32].
Measure 215 is thought to ensure higher levels of animal welfare preserving efficiency and quality of animal-based production. In particular, the measure gives specific attention to the development in housing conditions: Iif implemented, Measure 215 aims to ensure higher housing areas. At the farm level, a potential strategy to improve the housing areas is to reduce the number of heads, leaving farm sizes unchanged. However, such a strategy has implications on the environment that should not be neglected: In fact, livestock are major contributors of methane and nitrous oxide emissions [
7].
A policy measure, that aims to increase the housing areas by reducing the number of heads while keeping constant the size of the farms, allows a reduction of environmental impacts in terms of methane and nitrous oxide emissions. In fact, our analysis shows the reduction of livestock numbers lead to genuine GHG benefits, as also suggested in Garnett [
20]. We found coherence between animal-based policies and other greening requirements of the Common Agricultural Policy (CAP). As suggested in Solazzo and Pierangeli [
33], greening measures have limited environmental impacts. In particular, in line with previous literature, we found that Measure 215 contributed to reduce nitrogen [
34] and greenhouse gas emissions [
35].
Given the increasing environmental and ethical concerns related to the livestock sector, policymakers should enable regional-scale strategies and include specific voluntary measures in their national planning context to contribute to the improvement of animal welfare, as well as to the reduction of GHG emissions.