Can Geographical Indications (GIs) promote local economic development in rural areas? This paper explores the impact of GIs that identify and endorse agri-food products which are strictly embedded within the territory from which they originate. Examining Italian wine protected by GIs through an innovative dataset and by means of propensity score matching and difference-in-differences models make it possible to compare the local economic development trajectories of rural municipalities afforded GIs with the correspondent dynamics of a counterfactual group of similar municipalities without GI status since 1951. Rural municipalities with GIs experience population growth and economic reorganization towards non-farming sectors, which frequently involve higher value-added activities.

Understanding the socio-economic channels through which farmers affect agro-biodiversity (ABD) represents a relevant research area, especially in the light of the new sustainable development paradigm. Supporting ABD is one of the main goals of the EU Green Deal and the agricultural sector is being called on for a higher commitment. Nowadays, ABD interventions are linked not only to the genetic and natural resources of species, but also to farming practices, land management, living standards in rural areas and all the policy interventions supporting them. However, the existing literature is still mainly focused on the environmental and agronomic perspectives. This paper aims to assess the extent to which different socio-economic and policy factors affect the performance of farmers in supporting ABD at the territorial level. Starting from the FADN data and focusing on Italy, we built a new regional comprehensive indicator that accounts for three levers through which farmers mostly interact and can influence ABD: land use strategies, agriculture practices and management decisions, and Common Agricultural Policy (CAP) funds. Results reveal a heterogeneous spectrum of indicator scores at the regional level. Land use strategies have a significant relevance for the North-East regions and the Islands (Sicily and Sardinia), whereas agricultural practices emerge as the primary influential factors in the Centre and South. Policy funds dominate in the North-West, reflecting the greater expenditure capacity of the northern regions. These findings have important policy implications for the future of the CAP and the biodiversity EU strategy.

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Once the EU has perceived the strategic importance of local peculiarities to support rural development and high-quality productions, it has emphasized the need for more place-sensitive agri-food policies. The importance of socio-economic, historical and cultural factors as transfers of intangible value-added is particularly evident in the agri-food sector. Place-blind and sectorial-oriented approaches have indeed not succeeded in dealing with the territorial heterogeneity of agri-food systems. By delving into the longstanding debate on the conceptualizations of territory and focusing on the territories of origin of the most economically performant Italian Protected Designation of Origins (PDOs), this paper empirically investigates what are the contextual conditions that have mainly contributed in the economic success of local productions. Drawing on an original geo-referenced database, the analysis is conducted on a panel of Italian municipalities and exploits non-linear dynamic panel models. Findings point out the heterogeneity of affecting territorial factors. Imbalances come from both socio-economic conditions (food PDOs) and socio-cultural knowledge (wine PDOs). This paper informs the evidence-based debate on the relevance of territorially-sensitive interventions for the future of EU agri-food and rural development policies. In the case of GIs, it should consider being more place-sensitive as well as more integrated with other agricultural and regional policies to meet the EU’s socio-economic objectives.

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