Impacts of the Austrian Programme of Rural Development 2007-2013 on the Agricultural Sector, the Regional Economy and Aspects of the Quality of Life

The Austrian programme of rural development had an annual volume of 1.1 bilion € of public funds during 2007 to 2013. The support was given in order to improve the agri-environmental situation, to maintain agricultural production in regions with production disadvantages and to make productivity enhancing investments. The evaluation shows the impact on employment, productivity and environmental outcomes. An econometric analysis of the impact at the level of municipalities complemented the analyses of a bottom-up agricultural sector model and a regional input-output model of the Austrian economy. The results show that the programme contributed to maintaining marginal land in agricultural production, that employment and value added in the economy were stimulated and that the impact on the environment was reduced by lower green house gas emissions and lower nitrogen surpluses. The regional effects are very heterogeneous. Results on the indicators of quality of life were not conclusive.