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Welfare Implications of EU Enlargement under the CAP

Author

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  • Troy G. Schmitz
  • Christopher R. Giese
  • Clifford J. Shultz II

Abstract

The qualitative impacts of European Union (EU) enlargement on intervention prices, variable import levies, and export restitution payments for cereal under the Common Agricultural Policy (CAP) are analyzed using a partial equilibrium framework for EU cereal crops. The welfare implications are developed for both a net exporter and net importer. Consumer surplus, producer surplus, government revenue, and total welfare are compared and contrasted for the EU and the new entrant, both before and after enlargement. Dans le présent article, les répercussions qualitatives de l'élargissement de l'UE sur les prix d'intervention, les prélèvements variables à l'importation et les paiements de restitution à l'exportation des céréales dans le cadre de la Politique agricole commune (PAC) sont analysés à l'aide d'un modèle d'équilibre partiel pour les cultures céréalières de l'UE. Les répercussions sur le bien–être sont élaborées dans le cas d'un exportateur net et d'un importateur net. Le surplus des consommateurs, le surplus des producteurs, les recettes publiques et le bien–être total sont comparés pour l'UE et le nouveau venu, et ce, avant et après l'élargissement de l'UE.

Suggested Citation

  • Troy G. Schmitz & Christopher R. Giese & Clifford J. Shultz II, 2008. "Welfare Implications of EU Enlargement under the CAP," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 555-562, December.
    • Handle: RePEc:bla:canjag:v:56:y:2008:i:4:p:555-562
    DOI: 10.1111/j.1744-7976.2008.00147.x
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    References listed on IDEAS

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    1. Schmitz, Troy G & Schmitz, Andrew & Dumas, Chris, 1997. "Gains from Trade, Inefficiency of Government Programs, and the Net Economic Effects of Trading," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 637-647, June.
    2. Robert W. Ackrill, 2003. "EU Enlargement, the CAP and the Cost of Direct Payments: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 73-78, March.
    3. Alan Swinbank, 2008. "Potential WTO Challenges to the CAP†," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 445-456, December.
    4. Carsten Daugbjerg & Alan Swinbank, 2004. "The CAP and EU Enlargement: Prospects for an Alternative Strategy to Avoid the Lock‐in of CAP Support," Journal of Common Market Studies, Wiley Blackwell, vol. 42(1), pages 99-119, February.
    5. Robert Ackrill & Adrian Kay & Wyn Morgan, 2008. "The Common Agricultural Policy and Its Reform: The Problem of Reconciling Budget and Trade Concerns," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 393-411, December.
    6. Scrieciu, S. Serban, 2007. "Economic Impacts of Adopting the Common Agricultural Policy of the European Union: A CGE Approach to the Case of Romania," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 407-438.
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    Cited by:

    1. Andrew Schmitz & Troy G. Schmitz & Paul Schure, 2008. "High Commodity Prices and the EU's Single Payment Scheme: Some Consequences of Double‐Dipping," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 523-531, December.

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