1. Nejla Ben Arfa, LARESS, ESA Angers PRES l’UNAM / CNIEL - ABIES/AgroParisTech; Karine Daniel, ESA Angers PRES l’UNAM - INRA SAE2 LERECO UR 1134 Nantes; Carmen Rodriguez, LARESS, ESA Angers PRES l’UNAM; and Scott J. Shonkwiler, Department of Resource Economics, Reno, Nevada 89557-0105. This work was supported by the CNIEL, Credit Agricole, GROUPAMA, SEPROM and PSDR-GO (CLAP). The views defended here are the authors’ and not necessarily those of the organizations mentioned.
2. This coefficient is also called the coefficient of Hallet (2000).
3. One of the large districts into which France is divided for administrative purposes. France has 100 departements which are grouped into 22 metropolitan and four overseas regions. All regions have identical legal status as integral parts of France.
4. This analyse is performed at the departement level.
5. Cliff and Ord (1981) provide a formal derivation of this formula.
6. We do not present the cluster map for wine production (quality and other) because the low value of the Moran’s I suggests low spatial autocorrelation.
7. The robustness of the model is also tested by using others cut-off for geographical and time-road distance. However, we do not present all results since they are very similar.
8. The time weight matrix is provided by Odomatrix 2008, INRA UMR 1041 CESAER, Dijon ; from Route 500® IGN
9. The island of Corsica and French Overseas departements and Territories are also excluded because they are separated by sea or oceans, implying spatial discontinuity in data.
10. Pillar 2 measures include agri-environmental payments (PHAE, MAE, CTE, CAD) as well as compensation for natural handicaps (ICHN).
11. The elasticity is calculated in a partial equilibrium context, so we do not take into account the feedback effect of endogenous variables.
12. Compared to the spatial lag model which does not take into account variable endogeneity, results are not presented here but can be provided by authors upon request.
13. Total revenues = agricultural revenues + subsidies. Source: FADN EU, European Commission DG AGRI-G3 / Processed by INRA-SAE 2 Nantes 2007.
14. Source: Monthly Dairy Survey 2005
15. A similar result is found by Isik (2004) for the US dairy sector which shows a high milk price elasticity (2.67).
16. The United Kingdom has an average quota of 834 650 kg/year, where non-family worker represent 40% of the total AWU. Source: FADN EU and Livestock Office.
17. Dairy farmer incomes include income from milk, beef and veal, vegetable production, subsidies and other sources.
18. In metropolitan France, there are 95 departements, 337 arrondissements, each encompassing a number of cantons, and finally 36 000 communes.