A Composite Indicator to Assess Sustainability of Agriculture in European Union Countries

Abstract

AbstractFew studies have been conducted to assess agricultural sustainability in the European Union (EU), and all of them fail to provide a holistic view of sustainability in a relevant temporal horizon that could effectively support the design of policies. In this paper, a composite indicator is constructed based on the geometric aggregation of 12 basic indicators measured yearly in the period 2004–2020 (17 years) on all EU countries plus United Kingdom, with weights determined endogenously according to the Benefit of Doubt (BoD) approach. Our composite indicator has a two-level hierarchical structure accounting for the contributions of the economic, social and environmental dimensions of sustainability. In our results, Bulgaria, Croatia, Lithuania and Poland are the countries with the strongest growth rate of sustainability, while countries reaching the 90th percentile of the score in sustainability include Austria, Czechia, Estonia, France, Germany, Hungary, Latvia, Lithuania, Slovakia and Sweden. In overall, the social and the environmental dimensions have similar levels, while the level of the economic dimension is definitely higher. Interestingly, several countries with a high level of sustainability are characterized by a decline of the economic dimension, including Austria, Finland, Italy, Latvia and Slovakia. The reliability of our composite indicator is supported by the substantial agreement of sustainability scores with subsidies attributed by the Common Agricultural Policy (CAP). Therefore, our proposal represents a valuable resource not only to monitor the progress of EU member countries towards sustainability objectives, but also to refine the scheme for the attribution of CAP subsidies in order to stimulate specific sustainable dimensions.