Xylella fastidiosa invasion: Exploring the Economic and Social Impacts Using Italian Farm Accountancy Network Data

Xylella fastidiosa (hereafter Xf), is known to cause many different diseases likequick decline of olive in Italy. In this context, this paper aims to assess the quantitative socio-economic impact of Xf outbreak on Italian olive growers’ livelihoods and, to provide an update estimate of the private socio-economic effects due to this biological invasion. For these purposes, we applied a statistical approach, the Propensity Score Matching (PSM) and the Difference in Difference (DiD) model. This approach estimates the difference between what is empirically observable after the spread of Xf in the study area and what would have been observed, in the same period and for the same subjects, in the absence of this biological invasion. The comparison between the economic and social performances of the olive growing companies present in the Salento area (treated) and not present in the Salento area (untreated) was carried out using the estimator of the ATT.