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The Markets of Cotton Seed and Maize in Greece: Welfare Implications of the Common Agricultural Policy

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  • Katranidis, Stelios D.
  • Velentzas, Kostas

Abstract

The model developed in this paper is applied to cotton seed and maize industries and examines the welfare implications of the Common Agricultural Policy (CAP) cotton and maize policy regimes in Greece, after its accession in the European Union (1981). The results of the quantitative analysis indicate that in both markets remarkable amounts have been transferred in favor of producers. Cotton farmers received, however, considerably higher amounts and their income protection levels rose faster than was the case for maize farmers. On the other hand, maize consumers have lost, in terms of economic welfare, during the whole period under consideration and particularly after the mid-80's. This was not the case for cotton seed consumers, since they were buying during the whole period at world market prices. Finally, and in terms of economic efficiency, it has been shown that the CAP cotton regime is by far the more efficient compared to the maize regime due to the kind of practiced policies and the differences in the elasticities of supply.

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Bibliographic Info

Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 01 (2000)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:aergaa:26454

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Related research

Keywords: Crop Production/Industries;

References

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  1. Baltas, Nicholas C, 1987. "Supply Response for Greek Cereals," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 14(2), pages 195-220.
  2. Elamin H. Elbasha, 1997. "The Calculation of Research Benefits with Linear and Nonlinear Specifications of Demand and Supply: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1363-1367.
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Cited by:
  1. Scatasta, Sara & Wesseler, Justus & Demont, Matty, 2005. "Irreversibility, Uncertainty and the Adoption of Transgenic Crops: the Case of BT-Maize in France," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24758, European Association of Agricultural Economists.

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